PPL Corp shares declined despite analyst price target increases. BMO Capital raised its price target to $41 from $40 and maintained an Outperform rating following Kentucky Public Service Commission orders on the KU/LG&E rate case. The commission reduced the allowed return on equity slightly and adjusted capital riders, though the total revenue increase was only marginally reduced. BMO deemed these adjustments minor and beneficial in de-risking PPL's calendar. Mizuho adjusted its price target upward to $39 from $37 while maintaining a Neutral rating. Kentucky's Public Service Commission approved rate hikes for PPL subsidiaries Kentucky Utilities and Louisville Gas and Electric, allowing them to maintain elevated rates for over a million customers. The approved rates were slightly lower than interim increases implemented in January. The broader utilities sector experienced a selloff that dragged PPL lower despite these positive analyst developments.
Read full analysisPPL Corp shares declined despite analyst price target increases. BMO Capital raised its price target to $41 from $40 and maintained an Outperform rating following Kentucky Public Service Commission orders on the KU/LG&E rate case. The commission reduced the allowed return on equity slightly and adjusted capital riders, though the total revenue increase was only marginally reduced. BMO deemed these adjustments minor and beneficial in de-risking PPL's calendar. Mizuho adjusted its price target upward to $39 from $37 while maintaining a Neutral rating. Kentucky's Public Service Commission approved rate hikes for PPL subsidiaries Kentucky Utilities and Louisville Gas and Electric, allowing them to maintain elevated rates for over a million customers. The approved rates were slightly lower than interim increases implemented in January. The broader utilities sector experienced a selloff that dragged PPL lower despite these positive analyst developments.
PPL Corporation is a regulated electric and gas utility serving approximately 3.5 million customers in Pennsylvania, Kentucky, Virginia, and Rhode Island. The company recently received favorable rate case outcomes from the Kentucky Public Service Commission for its KU and LG&E subsidiaries, and is pursuing data center infrastructure expansion in Pennsylvania. As a defensive, dividend-paying utility, PPL is particularly sensitive to sector rotation dynamics like today's broad utilities selloff.