LONDON, November 18, 2015 /PRNewswire/ --
Aside from H1 results that demonstrated strong operational execution in the UK and reiteration of US rate filing prospects, National Grid has announced the intended sale of a majority stake in its UK gas business. The prospect of shareholder returns and long-term stronger growth outlook from the deal underpins the attraction of the company's combination of growth and yield. Our new valuation range is 874-1,067p per share ($66.5-81.2/ADR).
(Logo: http://photos.prnewswire.com/prnh/20130417/608168 )
Our previous valuation range was 796-1,067p per share ($60.6-81.2/ADR), with the low end based on a regulated asset value (RAV) based SOTP and the high end based on M&A multiples. Now that there is a defined transaction for one business on the horizon, we find it reasonable to include that at an M&A multiple. We believe the chances that National Grid can achieve a strong multiple for its UK gas distribution business are good, and therefore lift the low end of our range to 874p/share ($66.5/ADR).
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.
About Edison: We are an international equity advisory firm. We enable our client companies to achieve their capital market objectives. The team is made up of more than 80 analysts and investment professionals with many decades of experience. Our extensive company knowledge and industry expertise spans 10 business sectors and more than 700 listed companies globally. We give our corporate clients and investors privileged insight into global investment trends. Our distribution capability is key to ensuring a global investor audience can access our investment knowledge. Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:
Edison Investment research, +44-(0)203-077-5700
SOURCE Edison Investment Research
Source: PR Newswire
(November 18, 2015 - 12:31 PM EST)
News by QuoteMedia