United Utilities Group PLC

This report is an updated version of the report published on 28 April 2025 at 08:02 AM GMT+1.   

Kalkine’s Global Tariff Report provides an independent analysis of major global sectors affected by tariff changes, assessing the risks linked to stocks within these industries. This report focuses on sectors that are highly exposed to global trade. Typically, investors become cautious about these sectors. The sectors that are safer or might even benefit when tariffs are causing disruption.

As illustrated in the table below, several key sectors in different countries are directly impacted by the recent tariff announcement from President Trump.

Latest Updates on Global Tariffs by Trump’s Administration

• As of April 5, 2025, the United States introduced a baseline 10% tariff on nearly all imported goods. Shortly after, on April 9, the Trump administration announced a temporary 90-day suspension on any additional tariffs beyond this base rate. However, this pause does not apply to imports from Canada, Mexico, and China, which remain subject to existing tariff measures.
• Certain product categories, such as smartphones, computers, and select electronic devices, have been exempted from the new "reciprocal" tariffs, including the steep 145% duties on Chinese imports.
• Additionally, specific sectors like energy (including oil and copper), pharmaceuticals, semiconductors, and lumber are excluded from the baseline tariff but may face separate tariff regimes.

What are the different types of Tariffs?

A Snapshot of UK Trade Size (as of 11 April 2025)

Global Implications of Tariffs

Impact of US Tariffs on Various Sectors

Why does the UK Utilities Sector look Attractive Amid Tariff Concerns?

Considering the Global Market Dynamics & Tariff concerns, we have picked United Utilities Group PLC (LSE: UU.) from Utilities Space (defensive bet against extreme bout of volatility) based on comprehensive fundamental and technical research.

1.1: Company Overview United Utilities Group PLC (LSE: UU.) is an FTSE 100 index-listed UK-based provider of water and wastewater services in the North- West of England. Kalkine’s Tariff Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.    

1.2: The Key Positives, Negatives, Investment Highlights, and Risks:

 1.3: Top 10 Shareholders: The top 10 shareholders together form ~36.61% of the total shareholding. BlackRock Institutional Trust Company, N.A. and Lazard Asset Management, L.L.C. are holding maximum stakes in the company at ~9.96% and ~9.93%, respectively.

1.4: Key Metrics:

2.1: Recent Business Updates:

2.2: Financial Insights:

4.1: Price Performance and Technical Summary

The stock price has gone up by ~10.01% in the last one month and over the last six months, stock prices went up by ~5.14%. The stock has a 52-week low and 52-week high of GBX 928.00 and GBX 1,145.50 respectively and is currently trading above the mid-range of the 52-week-high-low levels.

4.2 Fundamental Valuation 

Valuation Methodology: Price/Earnings Approach

 Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 25 April 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5:  Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement.  

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.