Jun. 2, 2015, 12:58 PM
- PPL Corp. (PPL -8.5%) is sharply lower a day after completing the spinoff of its Talen Energy competitive supply business to focus solely on high-performing regulated utilities in the U.S. and the U.K.
- Tudor Pickering downgrades PPL to Hold from Buy with a $34 price target, cut from $38, as it expects U.K. headwinds, including the exchange rate and earnings quality, will continue to weigh on the stock.
- The firm estimates PPL’s earnings growth at ~4% through 2017 despite growing ratebase at 7% through 2019; despite the strong ratebase growth, PPL's U.K. utility earnings are flat through 2017 due to a change in regulatory regimes while the U.S. dollar has been strengthening relative to the British pound for a year.
Jun. 2, 2015, 12:45 PM
Jun. 2, 2015, 9:21 AM
May 21, 2015, 6:49 PM
- Windstream Holdings (NASDAQ:WIN) is off 1.3% in late trading as it's set to lose its spot in the S&P MidCap 400 to Talen Energy (Pending:TLN) after the close on June 1.
- Talen Energy is spinning off from PPL on or about that date -- and Windstream's market cap places it at the very bottom of the index.
Apr. 1, 2015, 12:26 PM
- Dynegy (DYN -2.1%) and NRG Energy (NRG -5.6%) are sharply lower after the FERC declined to approve a capacity performance plan submitted by the PJM Interconnection consortium and asked for answers to additional questions about the initiative.
- PJM operates a wholesale electricity market in the eastern U.S.; DYN is involved in the PJM and is looking to boost its share within the Regional Transmission Organization with proposed asset purchases, and a small part of NRG's capacity is within PJM.
- Deutsche Bank analyst Jonathan Arnold notes that FERC did not reject the proposal, but says FERC's action prolongs uncertainty for investors in the electric utilities that belong to PJM, which also include Exelon (EXC -1.8%), Public Service Enterprise (PEG -1.9%), American Electric (AEP +0.2%), PPL (PPL -0.4%) and FirstEnergy (FE -1.3%).
Jan. 5, 2015, 11:58 AM
- PPL Corp. (PPL -1.8%) is downgraded to Hold from Buy with a $37 price target, down from $39, at Jefferies, which cites lower assumed earnings power at the company's U.K. businesses.
- Due to the strong U.S. dollar and the loss of incentive revenues as the company's rates are reset in the new rate plan, the firm says it is lowering its 2016-17 earnings estimates.
- Jefferies believes PPL shares already include the upside from the proposed spinoff of Talen Energy.
Nov. 12, 2014, 2:14 PM
- Utility stocks, among the year’s top performing sectors in the market, are sharply lower today - a bad sign, says Weeden & Co. head researcher Michael Purves, who believes now is the time to reduce or hedge utility holdings such as the Utilities Select Sector SPDR Fund (XLU -1.9%).
- Ultra-low bond yields have made utility stock payouts look good by comparison., but valuations have been moving up; Purves says the rally has put XLU’s P/E ratio for the next 12 months at 17.4x, near a 10-year high.
- Investors ought to “start to take profits, given the run was getting long in the teeth,” Purves writes.
- The top 10 XLU holdings are all lower today: DUK -2.5%, NEE -1.7%, D -1.9%, SO -1.4%, EXC -2.8%, AEP -2%, SRE -1.7%, PPL -1.8%, PCG -1%, PEG -2.8%.
- Other ETFs: IDU, VPU, UPW, RYU, FUTY, FXU, PUI, SDP
May 27, 2014, 2:30 PM
- The utility sector is among the day's best performers after the annual capacity auction at PJM Interconnection, which runs the largest U.S. power grid, forecasts payments to electricity producers will jump to $120/MW-day vs. $59.37 in the previous 12-month period and expectations of $75-$100.
- The higher capacity price is a boon to power producers, which rely on the payments as baseline revenues; the auction results are viewed as another endorsement of natural gas.
- The outlook is particularly favorable for Exelon (EXC +3.9%) and FirstEnergy (FE +6%), according to S&P's Aneesh Prabhu; PPL Corp. (PPL +2.9%) also benefits, especially considering that the price in its region was expected to fall.
- The price for Public Service Electric & Gas' (PEG -0.2%) utility territory in northern New Jersey was set at $215/MW-day, down from $219 a year earlier.
- ETFs: XLU, IDU, VPU, DBE, RJN, UPW, FUTY, RYU, PUI, FXU, JJE, SDP, ONG, RGRE, UBN
May 23, 2014, 5:36 PM
May 30, 2013, 11:17 AM
Utilities are getting a bit of a reprieve after taking a beating over the past few days. Option implied volatility has been increasing as investors rotate out of high dividend yield positions in the wake of a rise in treasury yields: AEE +1.7%, D +0.3%, DTE +1.9%, EIX +0.6%, ETR +1.3%, EXC +0.7%, FE +0.9%, NEE +1.7%, PEG +0.8%, PPL +0.5%, SRE +1.3%, TE +0.5%, AEP +0.8%, DUK +0.6%, ED NU +1.6%, PCG +1.2%, SO +0.4%, XEL +1.3%.| May 30, 2013, 11:17 AM | 5 Comments
Nov. 27, 2012, 2:10 PM
Utilities (XLU +0.5%) could be poised for a rebound after a rough month. Yesterday, utility stocks jumped on the strength of electricity providers after Deutsche Bank upgraded Exelon (EXC +2%). Today, the sector again moves higher after ISI Group upgrades EXC to Buy from Neutral. Also: UNS +1.7%, NVE +1.6%, PPL +1.2%.| Nov. 27, 2012, 2:10 PM | 6 Comments
Apr. 10, 2012, 6:56 AM
Nov. 25, 2011, 12:09 PM
United States Steel (X +0.1%) is urging its shareholders to reject an unsolicited mini-tender offer from TRC Capital. TRC is attempting to acquire up to 3M shares of the company's stock at $24.50 per share. Other companies have faced mini-tender offers from TRC this year and recommended that their shareholders reject them, including: Adobe (ADBE -0.1%) and PPL (PPL +0.9%).| Nov. 25, 2011, 12:09 PM