National Grid has long been a quiet stock market star. That may soon change.
The share prices of the big six energy suppliers, such as Eon, have been crushed in recent years by tough anti-pollution regulations, meddling from regulators concerned about household bills and plunging fossil fuel prices.
National Grid, operator of Britain’s gas and power transmission networks, has glided along unperturbed, diligently handing back billions of pounds to its investors. In five years, the shares have gained 63% to £10.10, valuing the company at £37bn. Over the same period, Centrica has lost a third of its value and slashed its dividend.
An insightful note from Macquarie Capital explains why Grid’s salad days may be coming to an end. The core of its argument? Changes