Nicholas Amicucci, an analyst from Evercore ISI, has initiated a new Buy rating on PPL (PPL).
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Nicholas Amicucci has given his Buy rating due to a combination of factors that highlight PPL’s strategic positioning and growth potential. The company is seen as a key player in the energy infrastructure expansion within the PJM region, benefiting from its capabilities in transmission, distribution, and generation through its joint venture with Blackstone. This partnership not only addresses the rising power demand from data centers but also offers a shareholder-friendly approach with structured energy service agreements that mitigate capacity price risks.
Moreover, PPL’s operations in Kentucky are undervalued by the market, yet they present a favorable regulatory environment that is expected to drive significant rate base growth. With an anticipated annual EPS growth of 6-8% supported by cost reduction initiatives, PPL is positioned to enhance its return on equity while maintaining customer affordability. The valuation approach applied by Amicucci suggests a 16% upside potential, reinforcing the Outperform rating with a $43 price target.
In another report released on October 1, Bank of America Securities also maintained a Buy rating on the stock with a $38.00 price target.