Jefferies lifts PPL Corp price target to $40, maintains Buy rating

On Monday, Jefferies analyst team adjusted their outlook on PPL Corp (NYSE:PPL), raising the price target from $38.00 to $40.00 while sustaining a Buy rating on the company’s stock. Currently trading at $34.74 with a market cap of $25.65 billion, PPL appears overvalued according to InvestingPro analysis. The analysts highlighted PPL Corp’s involvement in the data center sector, noting the company’s trading position at a modest premium due to favorable developments.

The new price target reflects optimism surrounding PPL Corp’s recent data center developer activities in Kentucky and Pennsylvania, which are expected to contribute positively to the company’s financial outlook. With an overall "GOOD" Financial Health Score from InvestingPro and a remarkable 55-year track record of consecutive dividend payments, the company demonstrates strong fundamentals. The analysts expressed confidence in the long-term earnings per share (EPS) trajectory for PPL Corp, suggesting that the company is well-positioned for future growth.

PPL Corp’s generation plan in Kentucky might undergo changes, with potential adjustments including fewer batteries and postponed coal retirements. Despite these potential shifts, Jefferies analysts remain confident in the company’s strategy and its impact on long-term financial performance.

The report also noted that the cost efficiency of PPL Corp’s generation unit is competitive, with costs at $2,100 per kilowatt (kW) for gas and storage. This pricing is seen as reducing risk when compared to industry peers, providing an additional layer of financial stability for the company.

The maintained Buy rating and increased price target by Jefferies indicate a positive outlook for PPL Corp’s stock, as the company continues to make strides in the energy sector and capitalizes on opportunities within the data center market.

In other recent news, Pembina Pipeline (NYSE:PBA) Corporation reported a record-breaking financial performance for Q4 2024. The company achieved a quarterly adjusted EBITDA of $1.254 billion, contributing to a full-year adjusted cash flow of $3.265 billion. Pembina also increased its common share dividend by 3.4%. In terms of strategic advancements, Pembina fully consolidated ownership of Alliance and Aux Sable and is making progress on major projects like the Cedar LNG. Analysts have noted these developments positively, with firms like Barclays (LON:BARC) and Wells Fargo (NYSE:WFC) showing interest in Pembina’s strategic initiatives.

Additionally, Pembina’s total volumes reached 3.67 million barrels per day, marking a 6% increase year-over-year. The company is actively developing expansion opportunities, including the RFS4 expansion, Wapiti plant expansion, and the K3 cogeneration facility. In the face of market volatility and regulatory changes, Pembina remains focused on capital-efficient project development, particularly in the Western Canadian Sedimentary Basin. The company’s strategic moves and strong earnings underscore its robust position in the midstream sector.

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