UK water companies' stocks rise after JPMorgan upgrade

Pennon

22/07/2025 10:29

** Shares of UK water companies Pennon PNN.L, United Utilities UU.L, and Severn Trent SVT.L up 2.3%, 1.01%, and 1.4%, respectively

** J.P.Morgan upgrades rating on PNN to "overweight" from "neutral"; raises PT to 600p from 500p

** Brokerage also raises PT on UU to 1,300p from 1,200p, and cuts PT on SVT to 3,050p from 3,175p

** JPM says the environment secretary has already agreed to adopt five recommendations, including establishing a new independent regulator and shifting to a regional, catchment-based approach for water system planning

** "We see UK water stocks' valuations as undemanding against this backdrop - we remain "overweight" on Severn Trent and United Utilities," adds brokerage

** As of last close, PNN, SVT, and UU are up ~16%, ~10%, and ~9.55% this year

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))