United Utilities Group PLC Class A

UU.: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 7,616.00	Tjm	Cmthdlcq

Raising Our United Utilities FVE to GBX 790, but Shares Still Materially Overvalued

Tancrede Fulop

Mar 25, 2022

We have raised our fair value estimate to GBX 790 per share from GBX 760 for no-moat United Utilities. This reflects a higher 2022 fiscal EPS estimate that is mostly due to a tax credit, which the group announced in its trading statement ahead of fiscal 2022 results to be released May 26. Otherwise, the group affirms that current trading is in line with its expectations for fiscal 2022. We view the shares as materially overvalued.

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