Proactive Investors - Run By Investors For Investors

United Utilities downgraded to ‘hold’ from ‘buy’ by Deutsche Bank on valuation grounds

Deutsche Bank’s analysts said "we believe that UK political uncertainty is rising again as the Brexit negotiations come to a head with growing downside risks”
Water
The German bank maintained its target price at 850p and UU shares dropped to that level, down 1.6%

Deutsche Bank has cut its stance for United Utilities PLC (LON:UU.) to ‘hold’ on valuation grounds leaving none of the listed UK regulated utilities on a ‘buy’ rating.

The German bank maintained its target price at 850p and UU shares dropped to that level on Tuesday, down 1.6% in mid-morning trading.

READ: Citigroup cuts United Utilities to ‘neutral’ from ‘buy’ after 12-month target price reached

In a note to clients, Deutsche Bank’s analysts pointed out: “United Utilities’ shares have risen strongly since our 1 October 2018 upgrade to Buy with rising confidence around future incentive scheme performance improvements and moderating concerns around political risk.”

“However,” the analysts added, “the stock now looks less clearly undervalued, having risen above our 850p price target. Furthermore, we believe that UK political uncertainty is rising again as the Brexit negotiations come to a head with growing downside risks.”

View full UU. profile View Profile

United Utilities Group PLC Timeline

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use