Pennon Group Stock News

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...