LONDON, March 9, 2026, 22:01 GMT
- BofA raised National Grid’s price target to 1,525 pence from 1,300 on Monday. 1
- The utility last week extended its framework to FY31, accepted Ofgem’s RIIO-T3 terms and lifted its FY27 earnings growth view. 2
Bank of America raised its price target on National Grid to 1,525 pence from 1,300 on Monday, giving the British utility fresh analyst backing after last week’s growth upgrade. The London-listed shares were last quoted at 1,332.5 pence, down 5 pence earlier in the session, according to Reuters data. 1
The call matters because National Grid is about to move into RIIO-T3, Ofgem’s next five-year price-control regime for power transmission, which sets spending allowances and the returns grid owners can earn. On March 2, the company said higher allowed revenue — the regulator-set income it can collect — should lift underlying earnings per share by 13% to 15% in fiscal 2027. 2
National Grid also extended its financial framework to FY31 and said it would invest at least 70 billion pounds across the group, up 70% from the previous five years. Chief Executive Zoë Yujnovich said the focus was “disciplined execution, at scale” as modern networks become more important to growth in Britain and the U.S. Northeast. 2
About 31 billion pounds of the plan is earmarked for UK electricity transmission, 9 billion for UK distribution, 17 billion for New York, 12 billion for New England and 1 billion for National Grid Ventures, a filing showed. The company said group assets could reach about 115 billion pounds by FY31. 2
The UK piece matters most because the new licence gives investors more visibility over returns just as Britain tries to expand its grid. National Grid said the framework should allow its transmission business to earn an overall return on equity above 9%, while Ofgem’s final determination had set a real allowed cost of equity of 6.12% at 60% gearing. 2
Peer SSE also backed the new Ofgem framework last week, underlining how Britain’s big network owners are leaning on regulatory clarity to justify a new investment cycle. National Grid said RIIO-T3 should let it invest at the pace needed to nearly double the amount of power that can flow across the country. 3
Still, the plan leaves room for things to go wrong. National Grid said its asset target depends on regulatory approvals, customer demand and similar factors, and it flagged exposure to interest rates, exchange rates, supply-chain delivery, project timing and future regulatory decisions. Any delay there could dull the earnings lift investors are now betting on. 2
For now, the fresh BofA call keeps the stock in play after a sharp reset in guidance. The U.S.-listed ADRs were trading at $90.41 late on Monday, up 55 cents from the previous close, market data showed.
