MARKET TALK: Citigroup Cuts National Grid To Hold From Buy

9th Jul 2010 08:12

0712 GMT [Dow Jones] Citigroup downgrades National Grid (NG.LN) to hold from buy and target to 500p from 611p. Says now the dust has settled on the surprise GBP3.2B rights issue, three issues will determine the company's future: "the UK capex surge, how the capex/dividend is funded, and the likely strategic review of National Grid's US operations." Notes the new UK government seems committed to the environmental targets it inherited. In response, National Grid has upped its capex, Citi says. Adds that unless government policy changes, the capex is only likely to rise further. Shares -0.5% at 500p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 09, 2010 03:12 ET (07:12 GMT)