MARKET TALK: UBS Downgrades Pennon Group To Neutral From Buy

14th Jul 2010 07:18

0618 GMT [Dow Jones] UBS downgrades Pennon Group (PNN.LN) to neutral from buy following a period of outperformance. Year-to-date, Pennon has given a total return of 10%, outperforming the FTSE 100 and the sector by 10% and 21% respectively, notes UBS. In general, with inflation rebounding, credit conditions improving and regulatory visibility to '15, UBS sees all the UK water stocks as potential M&A targets. However, excluding M&A, it sees little fundamental upside in Pennon. Maintains 565p price target. Shares closed Tuesday at 582.5p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 14, 2010 02:18 ET (06:18 GMT)