United Utilities Group has seen its price target nudged higher to 1,327 GBp, even as analysts keep their fair value estimate broadly steady. This reflects a nuanced but still constructive shift in sentiment. This modest uplift largely rests on confidence in the company’s regulated, inflation linked cash flows and the visibility of future returns within the current regulatory framework, balanced against concerns over execution risks, interest costs, and future regulatory decisions. Read on to see how you can track these evolving targets and the shifting narrative around the stock over time.

Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value United Utilities Group.

🐂 Bullish Takeaways

• Citi analyst Jenny Ping raised her price target on United Utilities Group to £13.27 from £12.61, while reiterating a Buy rating. This signals continued conviction in the stock’s risk reward profile.

• The higher target implies support for the company’s ability to execute within its regulated framework and to translate inflation linked cash flows into dependable returns.

• Bullish commentary from Citi points to confidence that, despite known regulatory and cost headwinds, the current share price still underestimates the durability of earnings and future growth prospects.

🐻 Bearish Takeaways

• Even as Citi lifts its target, the relatively modest increase highlights ongoing reservations around valuation, with some risk that near term regulatory and cost pressures are already partly reflected in the share price.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• Issued earnings guidance for fiscal 2025/26, targeting revenue of £2.5 billion to £2.6 billion, adjusted for inflation, and earnings per share of around 100 pence, which underscores management’s confidence in regulated cash flow visibility.

• Announced an interim dividend of 17.88 pence per ordinary share for the six months ended 30 September 2025, a 3.5% increase year on year, consistent with its CPIH linked dividend policy.

• Confirmed the interim dividend timetable, with an ex dividend date of 18 December 2025, record date of 19 December 2025, and payment date of 2 February 2026, providing clarity for income focused shareholders.

• Fair Value Estimate remains unchanged at approximately £13.03 per share, indicating no revision to the intrinsic value assessment despite updated assumptions.

• The Discount Rate has risen slightly from about 8.41% to 8.46%, reflecting a modestly higher required return for equity holders.

• Revenue Growth is effectively unchanged at around 7.75%, suggesting stable expectations for top line expansion in real terms.

• Net Profit Margin is stable at roughly 21.0%, implying no material shift in long term profitability assumptions.

• The Future P/E has edged up marginally from about 18.14x to 18.16x, pointing to a slightly higher valuation multiple applied to forward earnings.