Severn Trent Share Discussion Threads

[hosede] 25/11/2011 13:54

I've thought for some time that these were seriously overvalued compared to their peers - so sold out a while back.

[miata] 25/11/2011 13:12

Severn Trent was off 2.5 percent after it reported a slightly bigger-than-expected drop in underlying first-half pretax profit.

Interim dividend 28.04 pence per share, up 7.7% in line with dividend policy of RPI +3%.

[miata] 23/11/2011 12:07

23 Nov Severn Trent PLC SVT HSBC Neutral 1,559.50 1,580.00 1,640.00 Upgrades

[miata] 21/11/2011 11:58

21 Nov Severn Trent PLC SVT Morgan Stanley Overweight 1,571.00 1,540.00 1,540.00 Reiterates

[miata] 24/10/2011 09:37

24 Oct Severn Trent PLC SVT Evolution Securities Add 1,534.00 1,627.00 1,627.00 Reiterates

[miata] 19/10/2011 11:42

19 Oct Severn Trent PLC SVT Investec Buy 1,529.00 1,751.00 1,751.00 Reiterates

[miata] 19/10/2011 11:42

19 Oct Severn Trent PLC SVT Morgan Stanley Overweight 1,529.00 1,540.00 1,540.00 Reiterates

[miata] 12/10/2011 08:26

12 Oct Severn Trent PLC SVT Morgan Stanley Overweight 1,551.00 1,510.00 1,540.00 Reiterates

[miata] 09/9/2011 08:36

09-Sep Severn Trent PLC SVT Citigroup Buy 1,455.50 1,653.00 1,653.00 Reiterates

[miata] 11/7/2011 11:22

Merrill:

NWG has announced today that CKI has made a revised non-binding cash offer
at 465p per share, 9% above Friday's close price. A 465p offer represents a 28% EV premia to 2012 RAV, we estimate, above the average 25% takeout multiple in previous UK water deals from back in 2006-07. NWG has agreed for CKI to now undertake due diligence. Existing shareholders will also be entitled to the 9.57p final dividend to be paid in September.

Positive for UK water peers: This is a significantly positive development for the other UK water stocks. Severn Trent being the cheapest UK water utility, remains our favourite UK water name but clearly Pennon and United Utilities are also likely to benefit from the above average takeout multiple implied by the CKI offer.

Current trading multiples of water peers:
In terms of 2012 EV/RAV premia, Severn Trent is trading at 5.5%, UU at 6.3% and Pennon at 11.4% premia. 15% EV/RAV Scenario: As highlighted in our scenario analysis earlier, even applying a conservative 15% EV/RAV premia would suggests upside of 18% for SVT and UU. Pennon is already trading at 11% premia, so a 15% scenario would imply 4% upside and a 10% premia would imply 9% upside from current levels.

We remain Buyers of SVT and UU and maintain our Neutral on Pennon, although Pennon is also clearly likely to benefit from this newsflow.

[miata] 28/6/2011 15:13

If a bid emerges for Northumbrian, then it will underpin valuations in the wider water sector. UU SVT & PNN are all trading at c.2% premia to their 2012 RABs, showing the scope for further upside. On our estimates since 2004 the transaction multiples for UK regulated utilities has ranged from a 20% premium to RAV in July 2010 to a 48% premium in November 2007, with an average of 29%.

[miata] 06/6/2011 08:25

Severn Trent dropped 1.28% or 19p to £14.61 after JP Morgan cut the company's rating to Underweight from Neutral.

[beardmore] 07/3/2011 16:22

Me too - £15.09!

[db125] 07/3/2011 14:47

Out for now at 1513.4!

[miata] 04/2/2011 13:07

Merill UPGRADE to BUY.

High RPI is beneficial for valuations, revenues, dividends and debt ratios. The Jan 2.5% VAT hike, higher commodity/food prices and utility bill hikes are expected to support 2011 RPI at high levels The next catalyst is 15th Feb 2011, when Jan 2011 RPI will be published. While 4.5-5% RPI starting Jan 2011 would be very supportive, we believe risks are probably on the upside.

[miata] 04/2/2011 13:07

Severn Trent is up 60p (4.3%) at £14.50 and United Utilities has added 21p (3.8%) to 576p following the upbeat note from Bank of America/Merrill Lynch.

[nellie1973] 18/1/2011 13:25

Broker upgrade

[dnevets] 02/12/2010 14:04

JTCod's thoughts might be of interest:

[5dally] 02/12/2010 10:51

Out of this for now,,,

[miata] 01/12/2010 10:41

XD today, pay 26.04p on 14/01/11.

Seems a 'risk on' day (ie miners up utilities down) with positive Chinese PMI.

[5dally] 01/12/2010 08:33

A good topping up opp. or wait ???? will we see £13 ????