In this article, we will look at the 12 Best UK Stocks to Buy According to Hedge Funds.
UK equities have spent much of the past decade trading at a discount to US peers, often overlooked in favor of faster-growing U.S. markets. That dynamic, however, has started to shift as investors look beyond a concentrated group of large-cap US stocks and toward markets where valuations appear more reasonable. The UK market, with its mix of global businesses and domestically exposed companies, has increasingly come back into focus, particularly as earnings resilience and dividend yields remain part of the appeal.
Institutional investors have begun to highlight this valuation gap more directly. Schroders notes that it continues to maintain “a healthy UK overweight allocation,” while “acknowledging the attractive valuation levels.” Fidelity International emphasizes a more bottom-up approach, targeting “UK companies which the Investment Manager believes to be undervalued” or where “the potential has not been recognized by the market.” At the same time, Aberdeen points out that “UK equities continued their positive start to 2026,” indicating that sentiment toward the market has started to improve at the margin.
Taken together, these views suggest that the UK market is being revisited not just as a value trade, but as a more balanced opportunity set where both cyclical recovery and stock-specific catalysts could play a role. With that in mind, we take a closer look at the 12 Best UK Stocks to Buy According to Hedge Funds.
Our Methodology
We used screeners to identify UK stocks with an average upside potential of at least 20% and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12. AstraZeneca PLC (NYSE:AZN)
On March 16, 2026, AstraZeneca PLC (NYSE:AZN) announced that Imfinzi, in combination with FLOT chemotherapy, has been approved in the European Union for treating adults with resectable early-stage and locally advanced gastric and gastroesophageal junction cancers. The company said the regimen includes treatment before and after surgery, followed by Imfinzi monotherapy, with the approval based on results from the Phase III MATTERHORN trial published in The New England Journal of Medicine.
On March 10, 2026, Guggenheim raised its price target on AstraZeneca PLC to 16,000 GBp from 15,500 GBp previously and maintained a Buy rating after updating its model following FY25 results and recent investor discussions.
On March 9, 2026, AstraZeneca PLC and Daiichi Sankyo announced that the supplemental biologics license application for Enhertu was accepted and granted priority review in the U.S. for patients with HER2-positive breast cancer with residual disease after prior treatment.
Earlier in March, Morgan Stanley raised its price target on AstraZeneca to $219 from $109 and maintained an Overweight rating, citing updated risk/reward and pointing to sector-leading earnings growth supported by a stronger pipeline outlook, with more favorable positioning expected into the second half of 2026.
AstraZeneca PLC develops and commercializes prescription medicines across multiple therapeutic areas, including oncology.
11. LivaNova PLC (NASDAQ:LIVN)
On March 19, 2026, LivaNova PLC (NASDAQ:LIVN) announced that the FDA granted premarket approval for its aura6000 System for treating adults with moderate to severe obstructive sleep apnea. The system uses proximal hypoglossal nerve stimulation to address patients with an apnea-hypopnea index of 15 to 65 who are unable to use or do not respond to first-line therapies such as positive airway pressure.
Last month, Barclays raised its price target on LivaNova to $73 from $67 and maintained an Equal Weight rating following a Q4 earnings beat. Baird also raised its price target to $83 from $75 and kept an Outperform rating, saying updated estimates suggest 2026 could be another beat-and-raise year. Mizuho raised its price target to $85 from $72 and maintained an Outperform rating, citing a solid outlook for 2026.
The rating updates followed LivaNova’s Q4 results, where the company reported adjusted EPS of 86c versus the 81c consensus estimate and revenue of $360.9M compared with $354.31M expected. CEO Vladimir Makatsaria said 2025 delivered “double-digit revenue growth” along with margin expansion and strong cash generation, driven by execution in its core businesses. Makatsaria added that the company is investing in its OSA platform to enter a high-growth market while maintaining momentum across its existing segments.
LivaNova PLC develops and markets medical technologies and therapies across multiple global healthcare markets.
10. National Grid plc (NYSE:NGG)
On March 18, 2026, Jefferies downgraded National Grid plc (NYSE:NGG) to Hold from Buy previously with an unchanged price target of 1,410 GBp, citing valuation following the stock’s recent re-rating. Jefferies added that the company’s regulatory catalyst pipeline for the remainder of the year “appears thin.”
On March 16, 2026, Deutsche Bank analyst James Brand raised the price target on National Grid plc (NYSE:NGG) to 1,430 GBp from 1,250 GBp previously and maintained a Buy rating on the shares. Goldman Sachs also raised its price target on National Grid plc (NYSE:NGG) to 1,450 GBp from 1,254 GBp previously and kept a Buy rating on the shares.
Earlier, Berenberg analyst Andrew Fisher raised the firm’s price target on National Grid plc (NYSE:NGG) to 1,300 GBp from 1,070 GBp previously and maintained a Hold rating on the shares.
National Grid plc (NYSE:NGG) operates electricity and gas transmission and distribution networks across the United Kingdom and the United States.
9. Pentair plc (NYSE:PNR)
On March 20, 2026, Pentair plc (NYSE:PNR) announced that Chair David A. Jones will retire from the Board at the company’s annual general meeting on May 5, 2026. Jones has served on the board since 2003 and as Chair since 2018. The company said T. Michael Glenn, a current independent director, will assume the role of Chair following the transition, bringing experience in strategy, marketing, and governance from prior leadership roles, including at FedEx.
Earlier in March, Seaport Research analyst Scott Graham lowered the price target on Pentair plc (NYSE:PNR) to $130 from $135 and maintained a Buy rating.
Last month, Pentair plc (NYSE:PNR) reported Q4 adjusted EPS of $1.18, above the $1.16 consensus estimate, on revenue of $1.02B versus $1.01B expected. CEO John Stauch described 2025 as a “remarkable year,” citing strong execution, cash flow generation, and continued investment across its water solutions portfolio. Stauch added that the company is entering 2026 with new leadership roles aimed at accelerating growth, improving customer experience, and enhancing operational efficiency.
Pentair plc (NYSE:PNR) provides water treatment and sustainable water management solutions across global markets.
8. Roivant Sciences Ltd. (NASDAQ:ROIV)
On March 19, 2026, Bernstein initiated coverage of Roivant Sciences Ltd. (NASDAQ:ROIV) with an Outperform rating and a $35 price target, citing potential upside from upcoming clinical readouts in pulmonary hypertension associated with interstitial lung disease and non-infectious uveitis. The firm noted risks around competitive data and launch execution, but said these concerns appear “appropriately discounted.”
Earlier in March, JPMorgan raised its price target on Roivant Sciences Ltd. to $33 from $31 previously and maintained an Overweight rating after updating its model to reflect the company’s settlement with Moderna. JPMorgan described the agreement as a “major overhang lift,” shifting investor focus toward upcoming clinical catalysts.
H.C. Wainwright also raised its price target on Roivant Sciences Ltd. to $34 from $33 previously and reiterated a Buy rating, incorporating $2.25B in litigation proceeds tied to a global settlement between Roivant subsidiary Genevant Sciences, Arbutus Biopharma, and Moderna related to lipid nanoparticle delivery technology.
Roivant Sciences Ltd. develops and commercializes biopharmaceutical products across multiple therapeutic areas.
7. Unilever PLC (NYSE:UL)
On March 19, 2026, Unilever PLC (NYSE:UL) was reported to be in discussions to spin off its food business and combine it with McCormick in an all-stock transaction, according to The Wall Street Journal. The report indicated that the remaining Unilever would focus on its beauty, personal care, and home products segments.
McCormick has confirmed it is engaged in discussions with Unilever PLC regarding a potential strategic transaction involving the food business, but said there is no certainty that a deal will be reached. The company noted it continues to evaluate strategic options to maximize shareholder value and does not plan to provide further updates unless additional disclosure becomes necessary.
On March 17, 2026, separate reports indicated that Unilever PLC had been exploring options to streamline its portfolio, including a potential separation of its food business, with the company working with advisers in the early stages of evaluating alternatives.
Unilever PLC is a global consumer goods company operating across beauty, personal care, home care, and food segments.
6. nVent Electric plc (NYSE:NVT)
On March 19, 2026, RBC Capital analyst Deane Dray raised the price target on nVent Electric plc (NYSE:NVT) to $143 from $138 and maintained an Outperform rating, citing takeaways from the company’s Investor Day. RBC said updated 2028 targets came in above expectations, supported by continued growth in liquid cooling, data centers, and power utilities.
On March 18, 2026, nVent Electric plc (NYSE:NVT) hosted its 2026 Investor Day, where management outlined its portfolio transformation, growth strategy, and updated three-year financial targets. CEO Beth Wozniak said the company has become a “more focused, higher-growth electrical company,” positioned to benefit from trends in electrification, digitalization, and sustainability. Wozniak added that the company is seeing a “strong start to the year,” with Q1 performance trending ahead of expectations. Management highlighted growth driven by infrastructure demand, particularly AI-related data center build-outs and power utilities, alongside continued investment in innovation and capacity expansion.
nVent Electric plc (NYSE:NVT) updated its financial targets, including organic sales growth of 10%–13%, adjusted EPS growth of 17%–20%, operating margins of around 22%, and free cash flow conversion of approximately 95%.
nVent Electric plc (NYSE:NVT) provides electrical connection and protection solutions across global infrastructure and industrial markets.
5. Rentokil Initial plc (NYSE:RTO)
On March 16, 2026, Citi analyst Marc Van’T Sant raised the price target on Rentokil Initial plc (NYSE:RTO) to 575 GBp from 550 GBp previously and maintained a Buy rating on the shares.
On March 12, 2026, UBS analyst Nicole Manion upgraded Rentokil to Buy from Neutral and raised the price target to 540 GBp from 430 GBp, marking the first positive stance since 2020. UBS said organic volumes appear set to return to growth and costs are stabilizing, suggesting a “valuable compounder could be re-emerging.” Oppenheimer also raised its price target on Rentokil Initial plc (NYSE:RTO) to $35 from $30 and maintained an Outperform rating, noting Q4 revenue of $1.7B was in line with expectations, supported by improving North America pest control trends, with FY26 tracking in line with consensus despite weather disruptions and geopolitical uncertainty.
Earlier, Rentokil reported 2025 revenue of $6.91B, up 2.6% organically and broadly in line with the $6.92B consensus estimate, while adjusted operating profit rose 5.4% to $1.07B with margins expanding to 15.5%. The company also said Chairman Richard Solomons plans to retire once a successor is appointed.
Rentokil Initial plc (NYSE:RTO) provides pest control and related route-based services across global markets.
4. Immunocore Holdings plc (NASDAQ:IMCR)
On March 16, 2026, Jefferies downgraded Immunocore Holdings plc (NASDAQ:IMCR) to Hold from Buy previously with a price target of $33, down from $48, after assuming coverage. Jefferies has said that Immunocore Holdings plc’s (NASDAQ:IMCR) lead product Kimmtrak addresses a “moderate” total addressable market in uveal melanoma and is nearing peak sales, adding that further upside now depends on pipeline success, where “shots on goal look risky.”
Last month, Immunocore Holdings plc (NASDAQ:IMCR) reported fourth-quarter EPS of (60c), below the (20c) consensus estimate. Revenue came in at $104.5M compared with the $107.77M consensus. Chief Executive Officer Bahija Jallal has said that Immunocore Holdings plc (NASDAQ:IMCR) delivered “a productive year of growth and progress” in 2025, supported by $400M in Kimmtrak sales and continued pipeline development. Bahija Jallal has added that 2026 will focus on executing clinical trials, with key data expected in oncology and the start of its first autoimmune study.
Immunocore Holdings plc (NASDAQ:IMCR) develops and commercializes immunomodulating therapies targeting cancer, infectious diseases, and autoimmune conditions.
3. Navigator Holdings Ltd. (NYSE:NVGS)
On March 19, 2026, Navigator Holdings Ltd. (NYSE:NVGS) announced that BW Group, its selling shareholder, is offering 7M shares in a secondary public offering, with the company not issuing any shares and receiving no proceeds. Navigator said it intends to repurchase 3.5M shares from the underwriters at the public offering price, though the buyback is not contingent on the completion of the offering. Citigroup, DNB Carnegie, Fearnley Securities, and Pareto Securities are acting as joint book-running managers. The deal was later increased to 8.0M shares from 7.0M and priced below the prior closing price of $19.17.
On March 13, 2026, Deutsche Bank raised its price target on Navigator Holdings Ltd. to $25 from $24 previously and maintained a Buy rating, citing a fourth-quarter earnings beat and a positive outlook.
On March 11, 2026, Navigator Holdings Ltd. reported preliminary fourth-quarter revenue of $152.83M versus the $136.15M consensus estimate and said total liquidity stood at $296.3M as of year-end 2025.
Navigator Holdings Ltd. owns and operates a global fleet of vessels transporting liquefied gases, including petrochemical gases, LPG, and ammonia.
2. Janus Henderson Group plc (NYSE:JHG)
On March 24, 2026, Victory Capital Holdings, Inc. said it has withdrawn its proposal to acquire Janus Henderson Group plc (NYSE:JHG), stating it would only proceed with a negotiated transaction supported by Janus Henderson’s Special Committee. The company said it remains interested in Janus Henderson as a “high-quality organization” and continues to pursue acquisitions that enhance scale, product breadth, and global distribution.
On the same day, Janus Henderson Group plc (NYSE:JHG) announced an amended agreement with Trian Fund Management and General Catalyst, raising the offer price to $52.00 per share in cash. The revised terms also allow for a $1.00 per share quarterly dividend starting July 2026 if closing is delayed due to regulatory approvals. The company said the updated offer represents a 25% premium to its unaffected share price and remains on track to close by mid-2026. Janus Henderson added that its board, following the Special Committee’s recommendation, determined Victory’s latest proposal is not actionable due to “unacceptably high closing risks,” noting multiple prior proposals had failed to address similar concerns despite extensive discussions.
Janus Henderson Group plc (NYSE:JHG) is a global asset manager serving institutional and retail clients across equity and fixed income strategies.
1. Klarna Group plc (NYSE:KLAR)
On March 19, 2026, Klarna Group plc (NYSE:KLAR) announced that its Klarna Card has reached 5M active users globally, highlighting what the company described as “rapid adoption” as consumers shift toward more flexible payment options. Chief Marketing Officer David Sandstrom said the trend reflects how users are “looking for control and flexibility in a single card,” with the ability to choose between paying immediately or over time depending on the situation.
On March 17, 2026, Klarna Group plc (NYSE:KLAR) said it surpassed 1M merchants globally, with merchant count growing 47% over the past year, including 285,000 additions in 2025 and more than 115,000 in the fourth quarter alone. Chief Commercial Officer David Sykes said reaching this milestone reflects how Klarna is becoming more embedded in everyday spending, as consumers increasingly use its services across categories ranging from home-related purchases to recurring lifestyle expenses.
Earlier in March, BofA analyst Matthew O’Neill reinstated coverage on Klarna Group plc (NYSE:KLAR) with a Buy rating and a $21 price target.
Klarna Group plc (NYSE:KLAR) operates a digital banking and payments platform offering flexible payment solutions across global markets.
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