1009 GMT - Investors' focus will be on the return on regulatory equity when the U.K. water regulator publishes its final regulatory proposal for U.K. water companies on Dec. 19, Jefferies analysts say. The analysts are cautiously optimistic for the sector. They expect the update to show higher regulated returns alongside a favorable framework on incentives and cost allowances, they write in a research note. With this, they downgrade their share ratings on Severn Trent and United Utilities to hold from buy, arguing the risk-reward looks more balanced for both companies, implying less upside. Shares in Severn Trent are down 2.3% at 26.80 pounds, while UU shares trade 1.9% lower at 11.08 pounds. (christian.moess@wsj.com)
(END) Dow Jones Newswires
December 06, 2024 05:10 ET (10:10 GMT)
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