Neutral stance taken on European utility stocks

With global markets likely to rebound in the coming months, it is the less defensive utility stocks that offer the best growth going forward. The European utilities sector has outperformed most major stock markets since 1 April 2002, according to SchroderSalomanSmithBarney (SSSB). 'Our view is this is unlikely to continue and we think some of the more defensive utility stocks are now fully valued,' says Daniel Martin, senior analyst at SSSB. 'United Utilities, Kelda, awg, Pennon and Scottish 7 Southern are all trading at or above our price targets.' Martin highlights Italgas, Red Ele...