Pennon, Eylül ayı strateji güncellemesi öncesinde bilanço baskısıyla karşı karşıya

Pennon faces balance sheet pressure ahead of September strategy update

Tue, August 25, 2026 at 2:00 PM GMT+3 1 min read

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.

UBS maintained its "buy" rating with a price target of 620 pence, noting the shares closed at 462 pence on 21 August.

Pennon's new chief executive, Keith Haslett, appointed in April, is conducting an operational review after the company recorded one of the weakest Environment Agency pollution ratings in the water sector over the past 15 years.

Both banks pointed to the strategic update as the key catalyst for the shares.

They agree that Pennon carries more debt than its water sector peers, with RBC putting net debt to regulatory capital value at 63.3%, rising to 67.1% by 2030.

RBC estimates that raising around £200 million would rebase gearing to roughly 64% by 2030, in line with United Utilities and Severn Trent.

UBS goes further, forecasting gearing could reach 70% by 2030 without action, and says it would not rule out "capital measures", which could include an equity raise, asset sales or a dividend cut.

The brokers highlighted the possible sale of Pennon Power, the group's solar and battery storage arm, as a way to ease balance sheet strain.