Severn Trent (SVT)

Sector:

Utilities

Index:

FTSE 100

2,470.00p
   
  • Change Today:
    -70.00p
  • 52 Week High: 2,975.00
  • 52 Week Low: 2,265.00
  • Currency: UK Pounds
  • Shares Issued: 299.09m
  • Volume: 611,193
  • Market Cap: £7,388m
  • RiskGrade: 109

JPMorgan downgrades Severn Trent as it turns cautious on water sector

By Michele Maatouk

Date: Tuesday 28 Jun 2022

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove downgraded Severn Trent on Tuesday as it took a look at the UK water sector.
It said the sector has performed well since the start of the regulatory period on 1 April 2020, with all three listed companies delivering strong returns and asset growth, while maintaining dividend growth at least in line with inflation.

"However, we are turning cautious on the subsector, given our belief that returns from April 2025 will be lower than the market currently expects," it warmed.

"We believe the companies can all manage cost inflation, given that revenue and asset growth are both indexed to CPIH.

"Yet, in our view, the regulator will challenge the companies to be more efficient while meeting environmental objectives - this may require further reinvestment in the coming years, limiting outperformance."

JPM maintained its preference for overweight-rated United Utilities on a relative basis to Severn Trent, which it downgraded to 'underweight' form 'neutral' and to Pennon, which it rates at 'neutral'.

The bank said it was also putting Severn and Pennon on "negative Catalyst Watch" into July 7th, when the water regulator, Ofwat, will be publishing a draft methodology for the next regulatory period.

"From a broader UK Utilities perspective we prefer those names with positive exposure to power prices, namely Drax (OW), Centrica (OW) and SSE (N), in that order," it said.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Severn Trent Market Data

Currency UK Pounds
Share Price 2,470.00p
Change Today -70.00p
% Change -2.76 %
52 Week High 2,975.00
52 Week Low 2,265.00
Volume 611,193
Shares Issued 299.09m
Market Cap £7,388m
RiskGrade 109

Severn Trent Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
48.81% below the market average48.81% below the market average48.81% below the market average48.81% below the market average48.81% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Price Trend
0.23% below the market average0.23% below the market average0.23% below the market average0.23% below the market average0.23% below the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average
Income
25.85% below the market average25.85% below the market average25.85% below the market average25.85% below the market average25.85% below the market average
50% below the sector average50% below the sector average50% below the sector average50% below the sector average50% below the sector average
Growth
91.21% below the market average91.21% below the market average91.21% below the market average91.21% below the market average91.21% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 2
Buy 3
Neutral 3
Sell 3
Strong Sell 2
Total 13
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Severn Trent Dividends

  Latest Previous
  Interim Final
Ex-Div 30-Nov-23 01-Jun-23
Paid 10-Jan-24 14-Jul-23
Amount 46.74p 64.09p

Trades for 28-Mar-2024

Time Volume / Share Price
17:41 1,685 @ 2,481.87p
16:58 76 @ 2,472.36p
16:35 364,383 @ 2,470.00p
16:35 2 @ 2,470.00p
16:35 471 @ 2,470.00p

Severn Trent Key Personnel

CEO Olivia (Liv) Garfield
Chair Christine Mary Hodgson
CFO Helen Miles

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