06:10 AM EDT, 05/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target price for National Grid ( NGG ) at USD70, based on FY25 (Mar.) P/E of 15.1x, which is in line with its 5-year forward P/E average. We introduce our FY26 EPS at GBP4.05. NG's FY24 underlying operating profit rose 4% Y/Y to GBP4.8 bln, driven by revenue growth in U.K. Electricity Transmission through the RIIO-T2 price control. Due to the need to upgrade the U.K.'s electricity network, NG planned a significant step up in investment, ~GBP60 bln investment plan over the five years till March 2029. Hence, NG announced a fully underwritten equity raise of GBP7 bln to maintain its regulatory gearing below 60%, which caused the short-term share price to stumble due to potential share dilution, in our view. Still, we think these investments are aligned with our view that electricity infrastructure plays an important role in net zero, while NG's highly regulated business model, which is shielded against price and volume risk, could also support its defensive profile. Maintain Hold.