PPL Corporation: Strategic Advancements and Financial Performance Drive Buy Rating

Analyst Neil Kalton from Wells Fargo reiterated a Buy rating on PPL (PPL – Research Report) and keeping the price target at $39.00.

Neil Kalton has given his Buy rating due to a combination of factors that highlight PPL’s strategic advancements and financial performance. The company’s ongoing earnings per share (EPS) growth, with a notable 9% increase in Q1 compared to the previous year, reinforces confidence in achieving its 2025 guidance range. Additionally, PPL’s involvement in data center projects, particularly in Pennsylvania and Kentucky, presents significant capital expenditure opportunities, which are expected to drive future growth.
Furthermore, legislative developments in Pennsylvania could potentially allow PPL to expand its regulated generation capabilities, offering another avenue for capital investment. Regulatory updates in Kentucky, including planned rate cases and infrastructure projects, are also seen as positive steps for the company. Overall, PPL’s strong EPS growth prospects, robust balance sheet, and strategic positioning in the data center sector contribute to the Buy rating, with expectations of a premium valuation compared to its peers.

Kalton covers the Utilities sector, focusing on stocks such as FirstEnergy, PG&E, and Xcel Energy. According to TipRanks, Kalton has an average return of 8.7% and a 63.71% success rate on recommended stocks.

In another report released on April 24, Morgan Stanley also maintained a Buy rating on the stock with a $38.00 price target.