Severn Trent downgraded by RBC

RBC Capital Markets has downgraded its investment rating on utilities group Severn Trent (LON:SVT) to 'underperform' from 'sector perform', which it says is based on valuation grounds.

The broker said: "We have updated our RORE calculation and valuation approaches such that our price target for SVT rises to 2300p (from 2200p previously). With -5% implied total return, we downgrade our rating to Underperform based on valuation."

At 2:46pm: (LON:SVT) Severn Trent PLC share price was -60.5p at 2435.5p