Ross Fowler, an analyst from Bank of America Securities, reiterated the Buy rating on PPL. The associated price target was raised to $43.00.
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Ross Fowler has given his Buy rating due to a combination of factors that highlight PPL’s strong growth potential and financial stability. The company is expected to achieve above-average earnings per share growth of 7.5%, supported by a robust balance sheet with a favorable FFO to debt ratio of 16-17%. Additionally, PPL operates in constructive regulatory environments, which further underpins its growth prospects.
Another significant factor influencing the Buy rating is PPL’s strategic initiatives, such as the joint venture with Blackstone Infrastructure to develop new generation capacity in Pennsylvania. This venture represents a substantial investment opportunity, potentially driving significant earnings growth. Furthermore, the increase in data center interconnection requests indicates promising expansion in this sector, which is anticipated to contribute positively to PPL’s long-term earnings trajectory.
In another report released on October 6, Evercore ISI also initiated coverage with a Buy rating on the stock with a $43.00 price target.