Edison Investment Research - National Grid plc (NG.) Strategy confirmed: Growth and returns

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Edison Investment Research

Strategy confirmed: Growth and returns

Asset-base growth and shareholder returns remain the two lynchpins of National Grid’s equity story. The investor teach-in may have focused on National Grid’s ‘other’ businesses segment, but we update our forecasts for the whole group and find the mixture of growth, returns and optionality attractive. Additional value from the disposal of National Grid’s UK gas distribution business offers upside to our fair value range of $55-69/ADR (800p-1,050p).

31/10/2016 8 EN

Underlying

National Grid plc

National Grid is a holding company. Through its subsidiaries, Co. owns and operates regulated electricity and gas infrastructure networks in the U.K. and the U.S. Co. operates through five business segments: U.K. Electricity Transmission, U.K. Gas Transmission, U.K. Gas Distribution, U.S. Regulated, and Other Activities, primarily relating to non-regulated businesses and other commercial operations not included within the above segments, including: the Great Britain-France electricity interconnector; U.K. based gas metering activities; U.K. property management; a U.K. LNG import terminal; U.S. LNG operations; and U.S. unregulated transmission pipelines, together with corporate activities.

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GB00BDR05C01 London Stock Exchange United States

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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