LONDON, March 24, 2026, 19:51 GMT
National Grid finished Tuesday’s session up 1.73% at 1,232 pence, shrugging off Goldman Sachs’ move to a neutral rating as the utility’s spending-fueled growth narrative continued to draw investor support. The stock outperformed the FTSE 100, which settled 0.7% higher.
Resilience counts here, with National Grid pushing to maintain momentum as UK rate expectations head higher and brokers hesitate. Despite Tuesday’s gain, shares remained roughly 14% under their March 2 high, which followed the company’s raised medium-term earnings guidance.
Goldman has downgraded the stock to neutral from buy, trimming its price target to 1,389 pence from 1,450 after recent gains and receding funding concerns squeezed further upside. SSE also got dropped to neutral, though targets went up for both United Utilities and Severn Trent—Goldman clearly becoming pickier across UK regulated utilities.
National Grid’s projections are still front and center for investors. Back on March 2, the company announced plans to pour at least £70 billion into its network by March 2031, aiming for roughly 10% asset growth each year. Adjusted EPS is forecast to climb 13%-15% in fiscal 2027 as the utility transitions into RIIO-T3, Ofgem’s upcoming five-year pricing framework for electricity transmission. “A further step in accelerating investment in Britain and the US Northeast,” CEO Zoë Yujnovich said. Securities and Exchange Commission
Goldman’s previous buy call leaned on the idea of stepped-up investment, quicker profit gains, and what seemed like an undervalued share price following National Grid’s 2024 equity raise. But with the stock climbing 45% since Goldman’s June 2024 upgrade, the bank now says most of that upside is already reflected.
Support from the wider market made a difference. London’s blue-chip index climbed, with investors sifting through conflicting cues out of the Middle East. “Britain’s exposure to energy shares gave the FTSE 100 fuel to pull ahead of the market pack,” said Dan Coatsworth at AJ Bell. Reuters
The real issue may lie elsewhere. In March, British households’ short-term inflation expectations shot up to 5.4%, according to a Citi/YouGov survey, after sitting at 3.3% in February. Reuters noted that traders are now almost fully pricing in three 25-basis-point hikes from the Bank of England this year. For utilities, climbing bond yields threaten to blunt the appeal of their stable dividends and regulated returns. “It’s difficult to avoid the reality that this is a significant jump,” Citi economist Callum McLaren-Stewart told Reuters Reuters.
Business sentiment took another hit, with Britain’s flash composite PMI dropping to 51.0 in March from 53.7. Factory input costs climbed at their sharpest rate since 1992, fueled by pricier energy and transport. “Boosting inflation and extinguishing GDP growth”—that’s how Paul Dales of Capital Economics put the impact of the conflict. National Grid? Its shares are stuck, wedged between steadier earnings prospects and the pressure of rising rates. Reuters
