Update shared on30 Aug 2025
Fair value Increased 1.44%Upward revisions in analyst price targets for United Utilities Group are driven by improving fundamentals, enhanced regulatory earnings visibility, and a robust dividend outlook—offset slightly by valuation concerns following share appreciation—resulting in a modest increase in the consensus target from £12.68 to £12.81.
Analyst Commentary
- Bullish analysts see improving fundamentals supporting higher price targets.
- Positive updates to regulatory guidance have enhanced earnings visibility.
- Robust dividend outlook continues to underpin overall sector attractiveness.
- JPMorgan and Morgan Stanley both reiterate confidence with Overweight ratings and notable target price raises.
- Bearish analysts highlight full valuation following recent share appreciation, prompting a downgrade despite stable price targets.
What's in the News
- United Utilities signed a £3 billion agreement to refurbish the 110km Haweswater aqueduct, securing water supplies for 2.5 million customers and creating about 1,200 jobs during construction, with work to start in 2026 via a Direct Procurement for Customers model.
- The company adopted new articles of association at its annual general meeting.
- United Utilities issued guidance for 2025/26, expecting revenue to rise to £2.5–£2.6 billion, in line with the final determination adjusted for inflation.
Valuation Changes
Summary of Valuation Changes for United Utilities Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £12.68 to £12.81.
- The Future P/E for United Utilities Group remained effectively unchanged, moving only marginally from 17.53x to 17.72x.
- The Consensus Revenue Growth forecasts for United Utilities Group remained effectively unchanged, moving only marginally from 10.3% per annum to 10.2% per annum.
Disclaimer
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