This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Attractive bullish breakout by share price beyond recent falling highs resistance. Shares had multiple bounces from 822p support since early May opening path to revisit recent May/2018 highs at 896p. 5.7% dividend yield is strong, but further increases in government bond yields could make its dividend less attractive. Regulatory headwinds on the utilities sector could hamper the share price. As a utility, it is deemed defensive, which could mean it under-performs during a strong market rally.
Analyst consensus is strongly Bullish, with 58% of brokers advocating to “Buy”, with 42% holding a neutral position, with no brokers recommending to “Sell”. A healthy 93.3% of brokers forecast share price growth from current levels, with median 12-month target price at 925p, well above our short-term goal. Both the most Bullish (996p, AlphaValue, 12 June) and most Bearish (865p, Credit Suisse, 4 June) recent broker updates are above current price level.
Next Event: AGM, 30 Jul; H2 Earnings Report, 8 Nov
Latest Broker 12-Month Consensus: 58% Buy, 42% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 0.3 | -5.4 | 9.6 | -4.1 | -18.0 | -21.6 | -10.7 | -9.3 | 4.7 |
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Prepared by Michael van Dulken, Head of Research