UBS has kept its 'neutral' rating on SSE PLC (LSE:SSE) and a price target of 2,350p, broadly in line with where shares were trading at 2,359p.
Analysts led by Mark Freshney issued the note following an investor visit to Aberdeen focused on SSE's transmission business.
Specifically, the meeting focused on £29 billion of capital expenditure planned between April 2026 and March 2031, of which SSE's share is 75%.
UBS said the company's main aim appeared to be reassuring investors on its ability to deliver that spending, with the broker already modelling £25 billion of the total.
Notably, UBS said there was no mention during the visit of artificial intelligence or data centre-driven power demand, which the broker found reassuring.
Eleven major projects make up around 80% of the £29 billion programme, with five already under construction.
Of 36 planning consents required, SSE is awaiting just eight, and the company expects most of these to be granted.
Four of the outstanding consents relate to substations where planning officers have recommended approval despite local committee objections, leaving a decision with the Scottish government.
The remaining three concern overhead lines involving around 1,500 new pylons, currently in a public inquiry, with a decision expected by March 2027 or shortly after.
UBS said SSE is using modular solutions to control costs, noting that many substations and pylons follow standardised designs across projects.
The broker highlighted early-stage earthworks already under way at the Netherton site, with around 190 vehicles engaged in ground preparation ahead of full consent.
Beyond the current programme, SSE has flagged seven additional large projects after 2030, expected to cost £17 billion in total.
UBS said this could point to a further capital spending round between 2031 and 2036 similar in scale to the current one, potentially taking SSE's regulated asset base to £55 billion to £60 billion by 2036.
On returns, SSE reiterated its target of more than 9% nominal return on regulated equity, which UBS believes could exceed 10% given current gearing and inflation.
The broker noted an incentive scheme allowing SSE to retain around 30% of constraint costs for a year if projects are delivered on time or ahead of schedule, with no penalty for delays of up to a year.
UBS values SSE shares on a 50% premium to its regulated asset base for the networks business, arriving at its unchanged 2,350p target.
The broker said it prefers SSE to National Grid, which it rates Sell with a target of 1,150p, though it sees limited upside in SSE shares from current levels.
