Severn Trent (SVT – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Sarah Lester from Morgan Stanley maintained a Buy rating on the stock and has a p3,200.00 price target.
Sarah Lester’s rating is based on a positive outlook for Severn Trent, despite the company’s replacement as the ‘Top Pick’ by National Grid in the broader EU Utilities coverage. The decision to maintain an Overweight stance on Severn Trent reflects confidence in the company’s underlying growth potential.
While the primary coverage has shifted, the updated risk-reward assessment for Severn Trent supports the Buy rating. This suggests that the stock is expected to perform well relative to its peers, offering a favorable investment opportunity for investors.