CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We revised our 12-month target price for National Grid (NG) to USD101 (from USD100), based on a FY 27 (Mar.) P/E of 16.9x, above its five-year forward P/E average of 14.8x, justified in our view by its earnings growth from increased grid investments. We revised our FY 27 EPADS to GBP4.45 (from GBP4.15), justified in our view by increased earnings growth from accelerated investments. We introduce our FY 28 EPADS at GBP4.80. NG's FY 26 underlying operating profit grew 6% Y/Y to GBP5.7 bln, owing to strong operational performance across regulated businesses. Underlying EPS rose 8% at constant currency to GBP0.78, establishing a strong baseline for its upgraded five-year financial framework. Looking ahead, NG extended its five-year financial framework to FY 31 with an upgraded investment commitment of at least GBP70 bln. The company targets 10% asset growth CAGR and 8%-10% underlying EPS CAGR. We think the secured regulatory momentum with RIIO-T3 approval is crucial for earnings transparency. Maintain Buy.