National Grid Releases Good Fiscal-Year 2022 Results, Confirms Medium-Term Guidance; Shares Rich

We maintain our fair value estimate of GBX 950 after no-moat National Grid released a good set of fiscal-year 2022 results, set 2023 guidance in line with expectations, reiterated its medium-term guidance, and recommended a final dividend of GBX 51, 3.7% above last year and implying a 4.1% yield. Defensiveness of its business model and protection against inflation are appealing in the current environment but are more than priced in as evidenced by a forward P/E of 19 times.