National Grid lifted to 'overweight' at Morgan Stanley

16th Jun 2015 11:29

Morgan Stanley upgraded National Grid to 'overweight' from 'equalweight' and raised its price target on the shares to 955p from 910p saying it sees attractions in all three business areas.MS said National Grid stands out in the European utility sector for its low-risk total return and valuation versus regulated peers.It said all three of the company's business areas show promise and offer combined asset growth of 6.1%.National Grid's balance sheet is robust, said MS, noting that the company has been able to issue debt at attractive rates, which means it should outperform the Ofgem cost of debt allowances both in the short and medium-term."NG offers low risk, double-digit total returns, with a 2015 estimated dividend yield of around equity regulated capital value growth/share of 5.7% and dividend growth at least in line with retail price inflation, on our numbers," said the bank.At 12:21, shares were up 0.5% at 853.20p.