Pennon Group (LON:PNN) Earns Hold Rating from Jefferies Financial Group

Pennon Group (LON:PNN)‘s stock had its “hold” rating reaffirmed by equities research analysts at Jefferies Financial Group in a research note issued on Thursday, Digital Look reports. They presently have a GBX 500 price target on the stock. Jefferies Financial Group’s price objective indicates a potential upside of 33.90% from the stock’s previous close.

PNN has been the topic of a number of other research reports. Citigroup reduced their price target on Pennon Group from GBX 6,560 to GBX 5,520 and set a “buy” rating on the stock in a research note on Thursday, June 11th. Royal Bank Of Canada reiterated an “outperform” rating and set a GBX 575 target price on shares of Pennon Group in a research report on Tuesday, August 25th. Finally, Deutsche Bank Aktiengesellschaft decreased their price target on Pennon Group from GBX 620 to GBX 550 and set a “buy” rating on the stock in a research note on Tuesday, June 16th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Pennon Group presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,297.14.

Pennon Group Stock Performance

Shares of LON PNN opened at GBX 373.40 on Thursday. The company has a 50-day simple moving average of GBX 455.54 and a 200-day simple moving average of GBX 488.66. The company has a debt-to-equity ratio of 347.81, a current ratio of 1.51 and a quick ratio of 1.53. The company has a market cap of £1.76 billion, a PE ratio of 19.35, a price-to-earnings-growth ratio of 8.20 and a beta of 0.57. Pennon Group has a 12 month low of GBX 340 and a 12 month high of GBX 605.

Insider Buying and Selling at Pennon Group

In other news, insider Laura Flowerdew sold 1,119 shares of the business’s 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. In the last quarter, insiders have acquired 96 shares of company stock valued at $44,883. 0.32% of the stock is owned by company insiders.

More Pennon Group News

Here are the key news stories impacting Pennon Group this week:

• Positive Sentiment: Pennon is raising £550 million through a rights issue to support increased investment under AMP8, reducing pressure on the balance sheet and helping fund regulatory infrastructure commitments. The shares have recovered from the sharp sell-off that followed the announcement. Pennon Group Shares Recover Following Rights Issue and Dividend Reduction
• Neutral Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 500 price target. The target indicates potential upside from recent trading levels, but the unchanged neutral recommendation suggests the broker sees a balanced risk-reward profile while the funding and investment plans are implemented. Pennon Group Earns Hold Rating from Jefferies Financial Group
• Negative Sentiment: The rights issue will dilute shareholders who do not participate, while Pennon’s decision to reduce and rebase its dividend weakens the stock’s income appeal. These concerns triggered a substantial initial decline and remain key risks for investors focused on yield. Pennon Shares Tumble on Rights Issue and Dividend Cut

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.