MARKET TALK: Exane BNPP Cuts National Grid Target Price

25th Jun 2010 09:03

0803 GMT [Dow Jones] Exane BNP Paribas cuts National Grid (NG.LN) price target by 6% to 645p to reflect the adjusted number of shares after the rights issue. Also takes into account that National Grid went ex-dividend on June 2. After the rights issue, estimates NG's financing needs are covered until March '12, allowing it to maintain its target of an 8% annual increase in the dividend until then. "The GBP22B capex plan will...improve the group's profile as supportive UK regulation should enable the group to maintain its returns above the cost of capital," adds Exane. Keeps the stock at outperform. Shares +0.2% at 503p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 25, 2010 04:03 ET (08:03 GMT)