Deutsche Bank lifts National Grid price target to GBP 11.50

On Wednesday, Deutsche Bank (ETR:DBKGn) analysts increased their price target on shares of National Grid (LON:NG:LN) (NYSE:NGG) to GBP 11.50, up from the previous GBP 10.50, while reaffirming a Buy rating on the stock. The revision follows National Grid’s announcement of financial results that met expectations for the 2024/25 period and provided earnings per share (EPS) guidance that exceeded market consensus for the 2025/26 fiscal year.

National Grid’s updated guidance suggests a 4% rise in medium-term EPS and approximately a 5% higher projection for the 2025/26 EPS compared to market consensus. The improved outlook for the 2025/26 fiscal year is attributed primarily to performance in the U.S. market. Despite these positive indicators, the company’s return expectations remain consistent, indicating that the increased earnings guidance is likely due to more effective translation of returns into cash flows rather than an underlying enhancement in economic performance.

In response to the company’s projections, Deutsche Bank has adjusted its IFRS earnings estimate for the 2025/26 period by 7% to 79.7p, which is above the guidance of around 78p and the Bloomberg consensus of 74.8p. The bank’s economic earnings forecast remains relatively unchanged at approximately 61p. For the 2026/27 fiscal year, Deutsche Bank has slightly raised its IFRS EPS estimate to 88.1p, marking a 6% increase over the consensus.

The revised estimates by Deutsche Bank imply an average EPS growth rate of 7.8% for National Grid, positioning it at the upper limit of the company’s own annual growth target range of 6-8%. This optimistic outlook by the analysts underscores their confidence in National Grid’s financial trajectory over the medium term.

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