London, Jan 26, 2026, 07:28 GMT
- United Utilities shares held steady before London trading following a downgrade by Morgan Stanley
- The stock has just broken above its 200-day moving average, a key long-term trend line closely monitored by chart traders
- UK water companies come under renewed pressure as complaints about bills rise sharply ahead of the next wave of price changes
United Utilities shares held firm at 1,192.5 pence on Monday, as investors absorbed a downgrade from Morgan Stanley late last week that has once again drawn attention to the UK water utility. 1 .
The timing couldn’t be worse for the sector. UK water companies face another round of bill revisions amid political pressure, with customers still fuming over sewage discharges and higher fees. Investors are trying to gauge how much new investment regulators will require.
Complaints about water bills jumped sharply last year, with over 16,000 filed in 2025—up from 10,600 in 2024, the Consumer Council for Water (CCW) reported. CCW chief executive Mike Keil highlighted “people’s worries about being able to afford increases in their water bill.” Water UK, the industry body, acknowledged “bill increases are never welcome” but noted £4.1 billion in support planned over five years for customers facing hardship. 2
Morgan Stanley downgraded United Utilities to “Equal Weight” from “Overweight,” trimming its price target to 1,450 pence from 1,475 pence. The move reflects the bank’s view that the stock’s strong 2025 performance is priced in. Simply put, “Equal Weight” signals expectations that the shares will keep pace with Morgan Stanley’s broader coverage universe. 3
The stock recently climbed just above a crucial technical benchmark. United Utilities pushed past its 200-day moving average—the average closing price over about 200 trading sessions and a common gauge for long-term momentum—MarketBeat pegged that level at 1,168.35 pence. On Friday, shares soared as high as 1,230.50 pence before settling at 1,206.50 pence. MarketBeat also noted that two analysts have the stock rated as “Buy” while one advises “Hold,” with a consensus target price of 1,379 pence. 4
Asktraders noted the downgrade weighed on a share price that had been locked in a sideways pattern since October, holding the stock within a narrow range despite a strong run last year. 5
On Monday, a separate technical analysis described the 200-day moving average as a crucial “line in the sand” for UK investors following initial dips tied to the downgrade. 6
United Utilities, headquartered in Warrington, northwest England, provides water and wastewater services. Known for its dividend appeal, changes in broker opinions and rate forecasts carry more weight here than they might for a high-growth stock.
Yet, crossing above the long-term average might just be a false signal. Should shares fall back below the 200-day mark, momentum traders often bail fast, shifting the focus right back to the harder issues: regulation, environmental upgrades, and the financing behind them.
Rivals like Severn Trent and Pennon Group remain in the spotlight as the sector grapples with public anger over bills and service. Any hint of stricter regulation or rising financing costs usually ripples through the entire group, not just one firm.
