Following the recent trading statement, the Budget, Ofwat’s draft decisions on the Accelerated Infrastructure Delivery Project, and ahead of UU’s FY23 results scheduled for 25th May 2023, we have updated our estimates. In absolute terms, there is little change to our FY23E estimates (Figure 1), although the low base translates into a marked % movement. We now forecast EPS of (3.5)p vs. (6.8)p previously. We are marginally ahead of consensus. Looking beyond FY23E, our EPS estimates are raised by 43.6% and 8.5% for FY24E and FY25E respectively, reflecting the impact of lower inflation assumptions on financial expenses in FY24E, the recovery in FY25E of consumption shortfalls that have impacted FY23, and an assumption of a 10% effective tax rate through to FY26E following the announcements in March’s Budget. We look to UU to provide more colour in this respect in due course. There are moving parts in our valuation, but in totality, little change. We nudge our target price up slightly to 1,225p (vs. 1,220p), implying a potential total return of c.17%, and we remain BUYERS