UPDATE: Bank of America Reiterates Buy Rating, Raises PT on National Grid plc on Good Market Position

In a report published Monday, Bank of America analyst Fraser McLaren reiterated a Buy rating on National Grid plc NGG, and raised the price target from $75.50 to $78.75. In the report, Bank of America noted, “National Grid remains well positioned in current markets, combining a low risk/low volatility regulated business model with a secure 4.8% dividend yield, which could see further compression vs UK/US sovereigns already sub 2.5%. We believe recently announced ECB stimulus action and our House view of further deterioration in European macro trends are ingredients for National Grid to outperform. We raise our PO to 965p [US$78.75], at which the shares would trade on a relatively undemanding inflation-linked 4.5% yield FY1 and offer a total return of c10%. DDM analysis could support c1000p. Grid is our top defensive European utility pick – reiterate Buy.” National Grid plc closed on Friday at $75.05.