BUZZ-National Grid: star broker gets behind stock
(Corrects to show broker repeats 'overweight' (didn't upgrade) in headline and bullet two)
** National Grid (LSE: NG.L - news) +1.1%, near top of FTSE 100
** Morgan Stanley (Xetra: 885836 - news) , rated 5 stars for recommendation accuracy on NG by StarMine, repeats "overweight" in a note called 'Closing the value gap in the US'
** At 40% of EV, the US is a large part of National Grid - which is growing quickly, and valuation discount should narrow (US biz trades on c.1.4x rate base – a hefty discount to peers at 1.7x, per MS)
** Broker says at 9% of EV, other businesses should not be overlooked: delivering new property developments in London's Fulham and Battersea, as well as providing further insight on Grid's additional 2000 acres, should drive value upside
** MS sees a flattening of the UK yield curve through 2017 and rising growth uncertainty as Brexit negotiations begin in earnest – both helpful for NG's relative investment story
** Third most actively traded UK blue-chip stock on Friday (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)