Dual Overweight Calls Put National Grid (NGG) Back in Focus

Core Viewpoint - National Grid plc (NYSE:NGG) is gaining attention from analysts with positive ratings and price targets, reflecting confidence in its financial performance and strategic focus on regulated electricity and gas networks [2][3][5]. Group 1: Analyst Ratings and Price Targets - Morgan Stanley initiated coverage of National Grid with an Overweight rating and a price target of $85.50 [2]. - JPMorgan raised its price target for National Grid to 1,250 GBp from 1,225 GBp while maintaining an Overweight rating [2]. Group 2: Financial Performance - National Grid reported first-half adjusted profit slightly above market expectations, driven by higher UK electricity transmission revenue and increased investment in regulated businesses [3]. - For the six months ended September 30, the company posted an underlying operating profit of £2.29 billion ($3.07 billion), exceeding the market's expectation of £2.24 billion [5]. Group 3: Strategic Focus - The company has been reshaping its portfolio under the leadership of former CEO John Pettigrew, focusing on regulated electricity and gas networks while divesting from non-core assets like the US onshore renewables arm and the Grain LNG terminal [4]. - National Grid reaffirmed its medium-term outlook, expecting underlying earnings per share to grow at a compounded annual growth rate of 6% to 8% from the 2024–25 baseline [5].