LONDON, March 9, 2026, 22:01 GMT
- BofA bumped up its price target for National Grid, moving it to 1,525 pence from the previous 1,300 on Monday. Morningstar
- Last week, the utility pushed its framework out to FY31, agreed to Ofgem’s RIIO-T3 terms, and raised its projected earnings growth for FY27. SEC
Bank of America bumped up its price target for National Grid to 1,525 pence from 1,300 on Monday, handing the British utility another dose of analyst support following last week’s growth upgrade. London-listed shares last changed hands at 1,332.5 pence, slipping 5 pence earlier in the session, Reuters data showed. Morningstar
This call comes as National Grid prepares to enter RIIO-T3, Ofgem’s upcoming five-year framework that will determine both spending caps and grid-owner returns. Back on March 2, the company projected that the regulator’s bump to allowed revenue would drive a 13% to 15% increase in underlying earnings per share by fiscal 2027. SEC
National Grid pushed its financial framework out to FY31 and committed to investing a minimum of 70 billion pounds across the business—a 70% jump from the prior five-year period. “Disciplined execution, at scale” is how Chief Executive Zoë Yujnovich summed up the approach, pointing to the growing role of modern networks for expansion in both Britain and the U.S. Northeast. SEC
The filing broke down roughly 31 billion pounds for UK electricity transmission, 9 billion for UK distribution, 17 billion targeting New York, and 12 billion set aside for New England. National Grid Ventures is allocated 1 billion. Group assets could hit around 115 billion pounds by FY31, the company said. SEC
The UK angle is key here—the fresh licence hands investors clearer line of sight on returns, right as Britain looks to scale up its grid. National Grid expects the new setup to push its transmission unit’s return on equity above 9%. That’s a notch higher than the 6.12% real allowed cost of equity (with 60% gearing) that Ofgem locked in with its final decision. SEC
SSE threw its support behind Ofgem’s updated framework last week, signaling just how much the UK’s major network operators are relying on regulatory certainty to back fresh investment plans. National Grid, for its part, said RIIO-T3 clears a path to ramp up spending enough to almost double national power transfer capacity. Morningstar
Even so, there’s plenty that could throw a wrench in the plan. National Grid noted that hitting its asset target isn’t guaranteed—it all rides on regulatory sign-offs, customer demand, and a handful of other moving parts. The company also pointed to risks from interest and exchange rates, supply chain issues, how projects line up, and whatever regulators decide down the road. Any hiccup could sap the earnings boost investors are currently counting on. SEC
BofA’s latest call is keeping the stock on traders’ radar following a steep guidance reset. As of late Monday, the U.S.-listed ADRs changed hands at $90.41, marking a 55-cent gain from the prior close, according to market data.
