MS sees European utilities outperforming, prefers big caps

National Grid

Mon 09:16

** Morgan Stanley expects European utilities to continue outperforming the market in 2027 and shifts its preference to large caps 
** MS expects "high-quality" growth underpinned by the wider themes of energy security, electrification and powering AI
** It selects British power grid operator National Grid NG.L as its top pick, while Italy's Enel ENEL.MI is its least preferred name among "The Big Six"
** Its order of preference is National Grid, RWE RWEG.DE, Engie ENGIE.PA, Iberdrola IBE.MC, E.ON EONGn.DE and Enel ENEI.MI
** MS raises its rating on Iberdrola to "overweight" from "equal-weight" as it expects EPS upgrades; cuts E.ON EONGn.DE to "equal-weight" from "overweight" citing valuation

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))