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.”