Nov 5, 2024, 10:30 PM
Nov 5, 2024, 10:30 PM
Citi Upgrades United Utilities Amidst Positive Regulatory Proposals
- Two banks upgraded ratings for UK water sector companies, expecting favorable regulatory pricing agreements.
- Citi anticipates a positive proposal from Ofwat on December 19, while JP Morgan predicts significant regulatory improvements.
- As a result, shares in United Utilities and Severn Trent rose, reflecting investor optimism amid broader market caution.
On November 5, 2024, two banks upgraded their ratings for several water companies in the UK, driven by expectations of favorable pricing agreements from the regulatory body Ofwat. Citi analysts forecast a constructive proposal from Ofwat on December 19, while JP Morgan Cazenove anticipates significant regulatory allowance improvements. Following these upgrades, shares of United Utilities and Severn Trent experienced notable gains on the FTSE 100 index. Investors remain cautious due to ongoing uncertainty surrounding the US Presidential election and impending interest rate decisions from the Bank of England and the Federal Reserve.
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