National Grid Shares Draw Mixed Analyst Calls as Valuation Concerns Rise

National Grid (LON: NG.) is facing a split on the analyst front this month, with a number of firms taking sharply different views on the stock’s outlook following a strong run in recent months.

The latest move came from Jefferies, which downgraded the shares to Hold from Buy, citing valuation after a notable re-rating. The firm kept its price target unchanged at 1,410 pence and told clients that National Grid’s regulatory catalyst pipeline for the remainder of 2026 “appears thin,” limiting scope for near-term upside.

The call follows two upward price target revisions from banks that remain constructive. Deutsche Bank lifted its target to 1,430 pence from 1,250 pence while reiterating a Buy rating, pointing to a more supportive regulatory backdrop and resilient earnings profile. Goldman Sachs also raised its target to 1,450 pence from 1,254 pence, maintaining its Buy recommendation.

However, the most cautious stance came from UBS, which cut National Grid to Sell from Neutral. The bank increased its target modestly to 1,160 pence but argued the stock’s risk/reward is “skewed to the downside.”

UBS highlighted that the shares trade at a sizeable premium to peers and said the “attractive” RIIO-T3 framework is already fully reflected in the valuation.

While supportive regulation and stable cash flows continue to attract buyers, some analysts warn that much of the good news may now be priced in.