Update shared on 19 Nov 2025
Analysts have increased their price target on PPL Corp. by $3 to $41, citing optimism for the utilities sector and expectations for continued outperformance because of sector growth trends and positive data center pipeline commentary.
Analyst Commentary
Recent analyst discussions around PPL Corp. highlight several key themes regarding its outlook, sector performance, and valuation drivers. The following summarizes primary takeaways from the latest Street research:
Bullish Takeaways- Bullish analysts have continued to raise PPL's price target in light of robust sector growth and strong relative performance versus the S&P over recent months.
- Positive momentum in the data center development pipeline is seen as a significant growth catalyst. Expectations are that data center interconnection demand will remain strong.
- There is growing optimism around the long-term advantages of nuclear energy and its potential to boost regulated utilities' market positioning. This potential is currently underappreciated in the broader narrative.
- Guidance surrounding large-scale renewables and residential solar remains broadly constructive, supporting the outlook for project execution and future earnings stability.
- Bearish analysts have made minor reductions to price targets in the near term, citing sector-wide reevaluations and modest recalibration of growth expectations.
- Uncertainty persists regarding the pace and logistics of new data center interconnections. Timing and capacity constraints present a potential risk for revenue realization.
- The evolution of regulatory frameworks around renewables, as well as the pace of technology adoption, remains an area to watch and could affect execution and valuation.
- Some cautious sentiment surrounds the sustainability of recent sector outperformance compared to broader equity markets. There is potential for relative underperformance if trends reverse.
What's in the News
- PPL Corporation issued updated earnings guidance for 2025, narrowing its ongoing earnings forecast to a range of $1.78 to $1.84 per share. The midpoint is $1.81 per share (Company Guidance).
- The company reaffirmed its long-term outlook and is projecting 6% to 8% annual EPS and dividend growth through at least 2028. Expected EPS growth is anticipated in the top half of that range (Company Guidance).
Valuation Changes
- Discount Rate: Increased modestly from 6.87% to 7.04%, reflecting a slightly higher risk premium in updated models.
- Revenue Growth: Decreased slightly from 4.43% to 4.21%. This indicates a minor reduction in forward growth expectations.
- Net Profit Margin: Improved from 17.03% to 17.39%. This suggests expectations for stronger profitability.
- Future P/E: Decreased from 21.59x to 20.96x. This implies a minor adjustment in anticipated valuation multiples.
- Fair Value Estimate: Remains unchanged at $40.60 per share despite other metric fluctuations.
Disclaimer
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