LONDON, March 12, 2026, 20:17 GMT
United Utilities Group rose 2.26% to 1,357.5 pence on Thursday, beating a falling FTSE 100, after an Alliance News broker-ratings roundup said Bank of America had raised its target price to 1,500 pence from 1,300 pence and investors rotated into utility names. 1
That move stood out because the wider market was on the back foot. Britain’s blue-chip index closed down 0.4% as oil climbed back to $100 and traders cut back hopes for an early Bank of England rate cut. 2
“The longer the disruption goes on, the greater the impact on energy prices and in turn global inflation,” Danni Hewson, head of financial analysis at AJ Bell, said. Utilities are often treated as defensive stocks, meaning businesses investors expect to hold up better when growth worries rise. 2
United Utilities was not alone. Reuters said utilities were among the few sectors to gain in Europe even as the STOXX 600 fell 0.6%, while an Alliance News roundup showed Bank of America also lifting Severn Trent’s target to 3,500 pence as that stock rose 2.66%. 3
United Utilities also sits in a slightly different regulatory lane from some rivals. The company did not appeal Ofwat’s 2025-30 settlement — the water regulator’s five-year plan that sets allowed bills and investment — unlike six other UK water utilities, while the Competition and Markets Authority said on Tuesday it had rejected most of the extra revenue sought by five appellants. 4
“We’ve rejected most of the bill increases water companies asked for but allowed limited extra funding where that’s genuinely needed,” Kirstin Baker, chair of the CMA’s independent group, said on Tuesday. The ruling did not involve United Utilities, but it showed how tightly the sector’s pricing backdrop is still being policed. 5
Reuters company data show United Utilities supplies water and wastewater services to more than 8 million people and businesses in northwest England and delivers about 1.8 billion litres of water a day. Its next scheduled update is full-year results on May 14. 6
But the case is not one-way. Reuters company data show United Utilities carried total debt of 10.8 billion pounds in 2025, so higher borrowing costs could still bite if oil keeps inflation pressure alive and rate-cut expectations keep being pushed out. Pennon gave a reminder earlier this week, saying full-year profitability would land at the low end of market expectations after storms and heavy rainfall drove costs higher, and flagging a likely net ODI penalty — Outcome Delivery Incentives, the mechanism that turns operating performance into rewards or penalties. 6
United Utilities remains below its 1,404p year high, but Thursday’s move leaves the stock up about 13.7% since the start of 2026 and near the top of its recent range. For now, in a London market rattled by oil and rates, regulated water still looked like shelter. 7
