National Grid share price: what’s the latest ahead of its half-year results?

The utilities company delivers its half-year results next week, with it likely to please investors with its latest trading update, though Ofgem’s proposals could dent dividends.

National Grid unveils its half-year results next Thursday, with investors expecting another strong performance from utilities company.

However, energy regulator Ofgem has proposed slashing the allowed rates of return for utilities companies over the next five-year cycle, beginning in 2021 – making dividend increases harder for the company.

Looking to trade National Grid and other utilities stocks? Open a live or demo account with IG.

Analysts upbeat about National Grid’s price trajectory

Credit Suisse and Deutsche Bank both upgraded their rating for the stock in October, issuing a target price of 970p and 930p respectively.

Based on National Grid’s current share price of 897p as of market close on Wednesday, the two banks believe that the stock has a potential upside between 3.6% to 8.1%.

You can go long or short National Grid with IG using derivatives like CFDs.

Threat of renationalisation in the UK persists

Labour leader Jeremy Corbyn has made it clear that his party would prioritise the renationalisation of utilities companies his party were to win the upcoming general election on December 12 – something that remains a significant concern for investors.

Another concern is of course the threat of a no-deal Brexit. Earlier this year, National Grid warned of gas supply risk in the event of a no-deal, with the UK potentially cut off from supplies from Europe if Britain were to leave the bloc without a deal.

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