Mon, Aug. 10, 7:15 PM
- Macquarie analyst Andrew Weisel makes a bullish case for utilities such as Edison International (NYSE:EIX), American Water Works (NYSE:AWK) and Aqua America (NYSE:WTR), noting that regulated utilities have boosted dividends by a median of 6.4% over the past year despite ambitious capex plans, and valuations look attractive.
- Weisel prefers growth over yield, emphasizing that utilities with a top-quartile long-term growth outlook consistently outperform those with top-quartile dividend yields; he forecasts the fastest growth for EIX, AWK and WTR, and the slowest for Duke Energy (NYSE:DUK), PPL Corp. (NYSE:PPL) and Teco Energy (NYSE:TE).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
Mon, Aug. 3, 7:07 AM
Sun, Aug. 2, 5:30 PM
Mon, Jun. 22, 3:49 PM
- PPL Corp. (PPL +0.3%) is upgraded to Buy from Hold with a $34 price target at Jefferies following the recent spinoff of its unregulated business and due to PPL's higher than average rate base growth.
- PPL is now a fully regulated T&D utility with no commodity exposure following its June 1 spinoff of Talen Energy, which Jefferies believes will allow PPL to be valued as a pure play regulated utility with a group average multiple; the adverse impact of PPL's exposure to the British pound sterling also appears to be easing, the firm says.
- With the stock trading at a discount to its regulated peers, PPL is at a sensible entry point for investors, the firm says, adding that investors would gain one of the sector's highest yields while waiting for share price appreciation.
Tue, Jun. 2, 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.
Tue, Jun. 2, 12:45 PM
Tue, Jun. 2, 9:21 AM
Thu, May 21, 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.
Wed, May 20, 12:51 PM
Thu, May 7, 7:28 AM
Fri, Apr. 24, 8:28 AM
- PPL Corp. (NYSE:PPL) says the U.S Justice Department has completed its review of the spinoff of its competitive electricity generation holdings, in the final regulatory decision needed to close the transaction.
- Talen Energy will be an independent publicly-traded company listed on the NYSE operating the combined competitive power generation businesses of PPL Energy Supply and P-E firm Riverstone Holdings.
- The companies say they are on track to close on the deal during the current quarter.
Wed, Apr. 1, 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%).
Tue, Mar. 17, 6:37 PM
- Despite the prospect of a Fed rate hike, patient investors should stick with utility stocks for their attractive yields, regular earnings and dividend growth, two analysts tell CNBC.
- While higher rates may look foreboding, Hilliard Lyons analyst David Burks says recent history shows the sector could still outperform, noting that electric utilities beat the S&P 500 "by a fairly wide margin" during the 2004-06 period of higher rates when the Fed raised rates 16 times.
- Morningstar's Travis Miller thinks the sector's short-term performance will continue to reflect interest rate movements, but that investors willing to hold utilities two years or more can get strong absolute returns.
- Burks' favorite income pick is PPL, his top growth pick is NEE, and he likes AEP for total return; Miller's picks include SO, which he says has come down substantially and is now trading a discount, plus DUK and ITC.
- ETFs: XLU, IDU, VPU, RYU, FUTY, UPW, PUI, FXU, SDP
Fri, Feb. 27, 10:40 AM
Thu, Feb. 5, 7:07 AM
Wed, Feb. 4, 5:30 PM
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PPL vs. ETF Alternatives
PPL Corp is an energy and utility holding company through its subsidiaries, is engaged in the generation and marketing of electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania and the U.K.
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