LONDON (ShareCast) - (Sharecast News) - Citi upgraded National Grid on Monday to 'buy' from 'neutral' and lifted the price target to 985p from 920p as it cited an attractive risk/reward.

"We see an attractive set up with: 1) a constructive political and regulatory outlook; 2) materially improved balance sheet with overhang removed; 3) at an attractive valuation for underlying assets that's meeting its regulatory and financial targets, albeit scope to improve," the bank said.

It noted that National Grid shares are currently trading at a 10% discount to its long-term EV RAB premium of 30%, with a sustainable and growing dividend offering circa 5.5% yield.

"With this combination of factors, as well as potential macro tailwind from rate cuts later in the year and into 2025 from the BoE, we see risk reward tilted to the upside," Citi said.

At 1030 BST, the shares were up 1.3% at 893.80p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE