United Utilities Group (LSE:UU.) saw its price target lifted to 1,550p from 1,450p and a Buy rating reiterated by Deutsche Bank in a note dated 5 May after the group's FY25/26 results and strategic update.
James Brand says the regulated water and wastewater company’s decision to increase planned AMP8 capital expenditure by c. £2.5bn (more than 25%), funded partly by a completed £800m equity placing, lifts expected regulated asset base (RAB) growth to roughly 10% a year and puts United Utilities on a growth trajectory closer to fast‑growing power networks.
Brand points to the capex uplift and the securing of funding via 're‑openers' as the core valuation driver and says those moves justify his target rise from 1,450p to 1,550p, noting the stock closed at 1,416.50p on the day of the note.
He flags Ofwat’s timetable for the 2026 submission-draft decisions expected 15 August and final determinations on 15 December-as the next material test of whether the higher AMP8 allowances and stronger RAB trajectory are accepted.
