06:18 AM EDT, 07/13/2026 (MT Newswires) -- AlphaValue/Baader Europe updated its financial estimates for United Utilities Group (UU.L) following its fiscal 2026 annual report, noting that this is the British water services company's first one under the 2025 to 2030 regulatory cycle. "FY2026 benefitted from a sharp tariff reset, with positively affected results. However, the benefit is front-loaded. From FY2027, tariff growth slows while costs increase. Management expects operating costs to rise by ~GBP100m a year, mainly from power, chemicals, labour and business rates, while depreciation should increase by GBP50-60m next year, and by more thereafter as the asset base grows by ~10% a year," the research firm said Monday. "The ~61m shares issued in the GBP800m equity raise also dilute EPS. We therefore reduce our FY2027 and FY2028 estimates." As such, analysts cut their EPS projections for 2027 by 8.79% to 0.822 pound sterling. Meanwhile, analysts still view the company's underlying returns as "attractive" amid expectations that the group will see most of the benefit from its ongoing investment program in the next regulatory period. An improvement in earnings growth is also forecast toward 2030. The stock is rated buy, with a price target of 17.71 pounds.

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