Jefferies Boosts National Grid Shares; Bond Funding Update Highlights Monday
On January 24, 2026, National Grid (NG.L) shares experienced a modest increase, closing the trading session at 1,191.5 pence, reflecting a 0.4% rise. This growth comes amidst an environment of renewed broker confidence, despite subdued market conditions.
Jefferies Raises Price Target for National Grid Shares
Brokerage firm Jefferies has increased its price target for National Grid shares from 1,260 pence to 1,410 pence, maintaining a “buy” rating. This adjustment demonstrates confidence in the company’s regulatory outlook, with approximately 80% of its regulated asset base secured through fiscal 2028.
The regulated asset base (RAB) refers to the asset pool that allows utilities to generate returns as determined by regulators. This provides a sense of stability for National Grid amidst fluctuations in the borrowing environment.
Bond Funding Update and Market Dynamics
In a related development, National Grid announced the release of an FCA-approved supplementary prospectus for its €20 billion Euro Medium Term Note programme. This programme facilitates the issuance of bonds in multiple tranches over time, allowing for flexible financing options.
Trading activity on the day saw National Grid shares fluctuate between 1,178.0 pence and 1,195.0 pence, with approximately 7.16 million shares changing hands. The stock’s previous closing price was 1,186.5 pence.
- Current Price: 1,191.5 pence
- Previous Close: 1,186.5 pence
- Price Target (Jefferies): 1,410 pence
- Trading Volume: 7.16 million shares
- UK 10-Year Gilt Yield: Approximately 4.53%
Market conditions remain sensitive, with UK 10-year gilt yields rising, highlighting how borrowing costs necessitate careful navigation for utility companies funded by debt markets. All eyes are on the Federal Reserve’s policy meeting scheduled for January 27-28, 2026, which could significantly impact utility valuations.
Upcoming Financial Announcements
National Grid is expected to announce its full-year results for 2025/26 on May 14, 2026, with the ex-date for the final dividend of ordinary shares set for May 28, 2026. These announcements will be closely monitored by investors as indicators of the company’s financial health.
In the United States, National Grid’s American Depositary Receipts (ADRs) closed at $81.80, reflecting a gain of 0.37%. This solid performance aligns with the company’s performance in the London market, as traders remain vigilant regarding rate expectations and broader economic factors influencing the utilities sector.
