Pennon Group (LON:PNN) Receives "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an “outperform” rating on Pennon Group and set a GBX 575 price target, implying about 24% upside from the stock’s GBX 463.80 opening price.
• Analyst sentiment remains positive overall, with five Buy ratings and two Holds; the consensus rating is “Moderate Buy,” though several firms recently lowered their price targets.
• Pennon shares were up 0.3% in early trading, while the company reported GBX 28.30 quarterly earnings per share, a 7.09% net margin and 6.61% return on equity.

Pennon Group (LON:PNN - Get Free Report)'s stock had its "outperform" rating reiterated by investment analysts at Royal Bank Of Canada in a research note issued to investors on Tuesday,London Stock Exchange reports. They currently have a GBX 575 price objective on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 23.98% from the company's current price.

A number of other analysts have also recently weighed in on the company. Citigroup lowered their price objective on Pennon Group from GBX 6,560 to GBX 5,520 and set a "buy" rating for the company in a research report on Thursday, June 11th. Jefferies Financial Group reduced their target price on Pennon Group from GBX 590 to GBX 500 and set a "hold" rating on the stock in a research report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft decreased their price target on Pennon Group from GBX 620 to GBX 550 and set a "buy" rating for the company in a research note on Tuesday, June 16th. Finally, UBS Group reissued a "buy" rating and issued a GBX 650 price target on shares of Pennon Group in a report on Friday, June 5th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of GBX 1,297.14.

Pennon Group Trading Up 0.3%

LON:PNN opened at GBX 463.80 on Tuesday. Pennon Group has a 52 week low of GBX 439.40 and a 52 week high of GBX 605. The firm has a 50 day moving average of GBX 469.58 and a 200 day moving average of GBX 515.15. The company has a quick ratio of 1.53, a current ratio of 1.51 and a debt-to-equity ratio of 347.81. The stock has a market capitalization of £2.19 billion, a price-to-earnings ratio of 24.03, a PEG ratio of 8.20 and a beta of 0.56.

Pennon Group (LON:PNN - Get Free Report) last announced its earnings results on Wednesday, June 10th. The company reported GBX 28.30 earnings per share for the quarter. Pennon Group had a net margin of 7.09% and a return on equity of 6.61%. The company had revenue of GBX 129.14 billion during the quarter. As a group, sell-side analysts anticipate that Pennon Group will post 1.0402417 earnings per share for the current fiscal year.

Insider Activity at Pennon Group

In other news, insider Laura Flowerdew sold 1,119 shares of Pennon Group stock in a transaction on Monday, July 20th. The shares were sold at an average price of GBX 493, for a total transaction of £5,516.67. Insiders have acquired 95 shares of company stock worth $44,685 in the last three months. Insiders own 0.33% of the company's stock.

Pennon Group Company Profile

At the top end of the FTSE 250, Pennon is an infrastructure group, focused on the UK water market is one of only three listed water companies in the UK. Operating in a stable regulatory environment with a positive outlook, we are focused on long-term sustainable growth, through disciplined capital allocation, organic and acquisitive. Our 25-year rolling licence provides predictable index-linked growth and visibility over future revenues. We provide clean and wastewater services through our businesses across the Great South West.

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