BofA Keeps National Grid plc at Buy After 'Strong' Fiscal H1 Execution, FY27 Outlook Upgrade

MT Newswires · 4d ago
06:40 AM EST, 11/06/2026 (MT Newswires) -- BofA Global Research maintained its investment opinion on National Grid plc (NG.L) after the British utility reported "strong" fiscal first-half execution and upgraded its fiscal 2027 guidance. "We believe H1 2026/27 results were supportive for National Grid's equity story, with sound execution and a capex guidance upgrade suggesting investors' concerns around the supply chain bottlenecks may be overdone. Moreover, optionality on a 5-year capex guide upgrade may start to emerge," according to a Friday note. For fiscal 2027, the company now targets 13.5 billion pounds sterling in capital expenditure from 13 billion pounds previously. Boosted by continued robust operational performance and higher allowed revenue during the RIIO-T2 to RIIO-T3 transition, National Grid also lifted its underlying EPS growth guidance to between 15% and 16% off the fiscal 2026 baseline versus the previous goal of 13% to 15%. As such, BofA reiterated its buy rating on the stock, with a price objective of 14.50 pounds. The research firm also lifted its 2027 and 2028 EPS assumptions, noting the company is on track for double-digit earnings growth. Analysts noted that key drivers of the investment thesis include a 9.6% projected EPS compound annual growth rate through 2030, improved regulatory visibility, and potential US rate case momentum following the midterm elections, among others.