Pennon Group Stock News

Pennon Group PLC (LSE:PNN, OTC:PEGRY) shares fell 10% to 322.40p; Deutsche Bank cut its rating from 'buy' to 'hold' and its price target from 550p to 380p. The bank wrote that the near-term 'buy' case had become increasingly difficult, citing limited guidance, weak returns, and a lack of earnings growth.

Pennon Group PLC (LSE:PNN, OTC:PEGRY) £550 million rights issue and dividend cut underpin the water group's strategic overhaul, with Citi and Deutsche Bank both rating the shares 'buy'. The fully underwritten fundraising offers seven new shares for every 15 held at 250 pence each, while the rebased £125 million dividend represents an approximately 30% cut per share.

Pennon Group PLC (LSE:PNN, OTC:PEGRY) has launched a fully underwritten £550 million rights issue to fund higher investment in its water businesses while rebasing its dividend by around 30%. The water utility will issue 220.3 million new shares at 250p each on the basis of seven new shares for every 15 existing shares, representing a 35.5% discount to the theoretical ex-rights price.

Pennon Group PLC (LSE:PNN, OTC:PEGRY), the owner of South West Water, faces a crunch balance sheet decision at its strategic update in September, according to two City brokers. RBC Capital Markets cut its price target on Pennon to 575p from 650p, though it kept an "outperform" rating, citing a lower assumed return on regulatory equity.

Pennon Group PLC (LSE:PNN, OTC:PEGRY) returned to the black in its latest financial as higher regulatory allowances and increased water consumption boosted revenue, though the water group warned operational performance would continue to be weighed down by regulatory penalties. The owner of South West Water swung to a statutory pre-tax profit of £114.4 million in the year to March, from a loss o...