JPMorgan revised its outlook on Tuesday National Grid (LON::LN) (NYSE:NGG), cutting its price target to £12.00 from £12.75 and maintaining an Overweight rating on the stock. The firm believes National Grid is well positioned to capitalise on the network’s growth opportunities, which it believes are value-accretive. The company’s recent £7bn capital raising has addressed concerns about its balance sheet.
National Grid is now targeting 10% asset growth by 2029, with the dividend expected to grow in line with the Consumer Price Index including Owners’ Housing Costs (CPIH). JPMorgan believes National Grid shares are attractively valued, citing a potential upside of 35% from its March 2026 sum-of-the-parts (SoP) price target of 1,200p. The company’s bull case suggests a 70% upside, but the stock is currently trading around its bear case.
According to JPMorgan, the current market price does not reflect the true value of National Grid shares, attributing the undervaluation to uncertainties related to the elections and regulatory decisions in the UK electricity transmission sector. Clarity should emerge following the regulator’s methodological decision, which is expected to be announced next week. JPMorgan reiterates its confidence in National Grid, adding the stock to its Analyst Focus List and maintaining its Overweight position.
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