UPDATE: Evercore ISI Upgrades PPL Corp (PPL) to Outperform

Evercore ISI analyst Greg Gordon upgraded PPL Corp (NYSE: PPL) from In Line to Outperform with a price target of $30.00 (from $31.00).

The analyst comments "We are upgrading PPL to Outperform at our $30 price target. Post the restructuring, selling UK business on June 14, 2021 (note) and using part of the proceeds to acquire Rhode Island based utility on May 25, 2022, we believe the shares command a higher valuation than currently reflected in the stock. Our $30TP drives a ‘24 P/E of ~17.5x in line with peer average vs ~16x current trading multiple which is a 10% discount to peers. Under the leadership of CEO Vincent Sorgi, PPL has taken major steps to de-risk the business including exiting UK, diversifying operations into a constructive regulatory regime in Rhode Island, and strengthening the balance sheet. Following the recent Moody’s upgrade to Baa1, PPL is amongst top quartile of companies in our coverage universe in terms of credit profile rated A- /Baa1 by S&P/Moody’s respectively. Furthermore, 50% of planned capex through 2025 is eligible for recovery through trackers/formula rates, and $150mm in targeted O&M savings will account for return on the balance of the spending, such that there will be no major rate cases through 2025. In a volatile tape, with minimal regulatory risk thru '25, no equity issuance, and a much simpler execution story, we expect shares to benefit from incremental investor interest."

For an analyst ratings summary and ratings history on PPL Corp click here. For more ratings news on PPL Corp click here.

Shares of PPL Corp closed at $27.05 yesterday.

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