United Utilities Group PLC

The fair value estimate for United Utilities Group has edged lower to £14.80 from about £15.16, reflecting mixed analyst revisions. Revenue growth assumptions were trimmed slightly from 5.66% to 5.64%, while the net profit margin assumption ticked up from 23.42% to 23.56%. The future P/E multiple used in models rose from 17.9x to 22.9x, and the discount rate fell from 7.79% to 7.38%. Price targets now span from about £13.40 at the cautious end to the mid £15 range and above, with Citi cutting its target to £13.40 and holding a Neutral stance, while Morgan Stanley, Deutsche Bank and JPMorgan have issued higher targets such as £15.50 and £16.20.