MARKET TALK: UBS Downgrades Severn Trent To Neutral Vs Buy

14th Jul 2010 08:13

0713 GMT [Dow Jones] UBS downgrades Severn Trent (SVT.LN) to neutral from buy after the stock gives a total return of 24% year-to-date, outperforming both the FTSE 100 and the sector. Sees little fundamental upside for Severn Trent, although highlights that M&A will be a factor for UK regulated utilities. Says for investors looking for some gearing into the UK water M&A theme, there is better value in United Utilities (UU.LN). Outside of this, sees National Grid (NG.LN) as a compelling investment. Maintains Severn Trent price target at 1275p. Shares are -1.1% at 1278p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 14, 2010 03:13 ET (07:13 GMT)