How Investors May Respond To PPL (PPL) Joining Blackstone to Power Data Center Growth in Pennsylvania

• PPL Corporation recently announced a joint venture with Blackstone Infrastructure to develop and operate new gas-fired combined-cycle power plants in Pennsylvania, aiming to meet rising electricity demand fueled by data center expansion, while reaffirming earnings and dividend growth targets through at least 2028.
• This move reflects how the company is positioning itself to capture opportunities from the accelerating demand for reliable power supply in the data center sector.
• Next, we'll explore how PPL’s partnership with Blackstone shapes its investment narrative amid growing energy needs from data centers.

Find companies with promising cash flow potential yet trading below their fair value.

PPL Investment Narrative Recap

To own shares of PPL today, investors need to believe the company can execute on major capital projects, secure timely cost recovery, and capture new load growth from data centers. The Blackstone joint venture directly supports PPL’s main short-term catalyst, large-scale capital investment linked to electricity demand in Pennsylvania, but does not erase risks around regulatory lag or dependence on data center-driven growth.

Among recent updates, PPL’s reaffirmation of 6% to 8% annual growth in earnings and dividends through at least 2028, even as it scales up new ventures, is especially relevant. This ongoing ability to hit its financial targets, while investing billions in grid and generation assets, underpins confidence in the company’s capacity to balance growth with shareholder returns.

Yet despite these positive signals, investors should not lose sight of ...

Read the full narrative on PPL (it's free!)

PPL's narrative projects $9.6 billion revenue and $1.7 billion earnings by 2028. This requires 2.8% yearly revenue growth and a $714 million earnings increase from $986.0 million.

Uncover how PPL's forecasts yield a $38.54 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members estimate PPL’s fair value between US$24.73 and US$45.87 per share, reflecting considerable variation in expectations. With PPL relying heavily on demand from large data centers, your outlook may depend on how you view future trends in electricity consumption.

Explore 3 other fair value estimates on PPL - why the stock might be worth as much as 23% more than the current price!

Build Your Own PPL Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PPL research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free PPL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PPL's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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