National Grid PLC (LSE:NG.) has up to 70% upside with a fair wind according to a bullish write-up from analysts at JP Morgan ahead of next week’s regulatory determinations for the next five years.
“We see National Grid as well positioned to benefit from value-accretive networks growth at an attractive valuation, and with questions around the balance sheet answered after a £7bn equity raise.
“Our bull case scenario implies 70% upside, with the stock currently trading around our bear case scenario.”
Even on a mid-case basis, the US bank sees some 35% potential upside to its price target of 1,200p.
National Grid itself has forecast 10% asset growth to 2029, with a rebased dividend growing in line with housing-linked inflation.
“We believe that the shares are trading below fair value because of election uncertainty, and because of regulatory uncertainty in UK Electricity Transmission - we should begin to see clarity from the regulator’s methodology decision due next week.”
Shares rose 1% to 895.4p.