NGGTF - National Grid: Clean Energy Transition Continues
2024-01-23 18:12:44 ET
Summary
- NGG’s recent performance has been strong, as inflationary conditions and acquisitions have allowed for an increase in its growth trajectory.
- The company is investing heavily in the energy transition, with Capex comprising ~30% of revenue.
- NGG is in a monopolistic position in the UK, positioning it perfectly to win in the coming decades.
- Management has lifted its guidance for the coming years, while maintaining a strong pipeline.
- Although we are not wholly supportive of its capital allocation strategy, we do see this as lucrative for investors with a dividend yield of ~6%. We do not see sufficient upside to rate the stock a buy.
Investment thesis
Our current investment thesis is:...
National Grid: Clean Energy Transition Continues