LONDON, March 24, 2026, 13:04 GMT
National Grid ticked up nearly 1% on Tuesday, shrugging off a downgrade from Goldman Sachs, which lowered its rating on the British grid operator to neutral from buy. Investors seemed to stick with the company’s growth-through-investment story. As of the latest delayed trade, shares were up about 1.1% at approximately 1,224 pence. Goldman also shifted SSE to neutral in the same move.
National Grid’s position is key, with the company close to the heart of efforts to beef up power grids as utilities scramble to keep up with electrification and surging demand from data centres. The shares held up, even as broader European markets slid—oil supply jitters dented risk appetite.
Goldman’s Ajay Patel cut his price target on the stock to 1,389 pence from 1,450, citing the recent gains, fresh business strategies, and waning concerns around funding and the now-abandoned zonal pricing plan, broker notes show. The UK had floated the zonal pricing scheme—which would have set regional, not national, wholesale power rates—but ministers scrapped it last year.
National Grid has tossed investors some new numbers this month. After agreeing to Ofgem’s RIIO-T3— the five-year cap on transmission spending and returns running April 2026 through March 2031— the company bumped its 2027 adjusted EPS growth forecast to 13%-15% on March 2.
The group committed to pouring at least 70 billion pounds into investments through fiscal 2031. “A further step,” is how Chief Executive Zoë Yujnovich described the plan, adding that “modern, resilient networks are fundamental to economic growth.” Investegate
The bigger picture hasn’t faded. Amundi’s Timothy Ho told Reuters that regulated network operators are “relatively attractive” given steady earnings and growing grid investment demand. But Banor SIM’s Angelo Meda flagged valuations for some British and continental utilities as stretched. Reuters
Still, the stock doesn’t offer much safety. Oil jumped again Tuesday, with the ongoing Middle East turmoil stoking supply concerns. Investors are already contending with hotter inflation and rising bond yields — not great news for utilities, which tend to be leveraged and attract income-focused holders.
National Grid’s to-do list isn’t getting shorter. Earlier this month, Ofgem said National Grid Electricity Transmission would pay 20 million pounds into a redress scheme tied to licence failures at the Harker 132kV substation in Cumbria—a pointed reminder that regulatory eyes are still on the company, even as investors cheer its latest spending ambitions.
Yet buyers are sticking around. France’s Engie snapped up UK Power Networks for $14 billion last month—a clear signal that regulated network assets still draw plenty of interest. Some analysts, though, are beginning to question whether investors should keep paying up for these deals.
