SSE PLC (LSE:SSE) and Severn Trent (LSE:SVT), two FTSE 100 utility companies, have been given a share price target hike by Deutsche Bank.
SSE’s target price from the bank was lifted to 1,800p from 1,670p, whilst Severn Trent’s price target was lifted to 2,900p from 2,800p.
Deutsche’s analysts said they expect SSE will update its investment plan with more details on its growth ambitions and possibly extend its dividend growth target at its next trading update.
The analysts also stated that the UK water sector’s results, which will include United Utilities Group PLC (LSE:UU.) and Pennon Group PLC (LSE:PNN, OTC:PEGRY), will help understand the companies’ inflation exposure, including their power hedging.
National Grid PLC (LSE:NG.), which already had a ‘buy’ recommendation from Deutsche, should also be able to provide more details around long-term growth drivers at its investor day on 18 November, the analysts added.
