United Utilities Plc (LON:UU) has been upgraded by Deutsche Bank with the FTSE 100 constituent described as a ‘stand out’ among the peer group.
The German bank’s new ‘buy’ rating comes with a 850p price target, up from 820p, suggesting some 18% upside to the current price of around 720p.
Specifically, Deutsche sees the share as being a value opportunity following recent weakness in the share price.
“The renewed decline in the share price takes it back towards multi-year lows although the company is articulating a more constructive message around its prospective performance and recent regulatory disclosure surprised us positively,” Deutsche said.
“Political and regulatory risks remain significant although the stock now trades at a 1% discount to RAB (Regulatory Asset Base) which we believe skews risks to the upside if the company can improve its performance or if political risks fade.”
In London, United Utilities shares were up 16.2p or 2.3% changing hands at 720.2p.