Credit Suisse has upgraded its investment rating on utilities group Pennon (LON:PNN) to ‘neutral’ from ‘underperform’, believing the company is likely to benefit from GBP weakening and that it sees a lack of immediate downside risks with near-term upside to consensus earnings per share.
The broker added: “PNN has underperformed the MSCI European Utilities index c14%, UK regulated peers c11%, and the FTSE-100 c15%.
“We believe the market is more cognisant of medium-term risks in UK Waste and starting to price them in.”
Analysts have increased their target price to 800 pence per share from 790 pence.
At 2:53pm: (LON:PNN) Pennon Group PLC share price was +17.5p at 826.5p
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