Barclays Upgrades PPL Corporation to Overweight, Raises Target to $40
Barclays upgraded PPL Corporation to Overweight and raised its price target to $40, citing constructive Pennsylvania rate case prospects and discounted valuation. PPL reported Q4 ongoing EPS of $1.81 (up 7.1% YoY), guided 2026 EPS to $1.90–$1.98 and plans $23 billion in capital investments through 2029.
1. Barclays Upgrade
Barclays upgraded PPL Corporation from Equal Weight to Overweight and increased its price target from $37 to $40. The firm highlighted a likely positive outcome in the Pennsylvania rate case, increasingly visible above-average earnings growth and a discounted stock valuation that offers upside as results improve.
2. Q4 Results and 2026 Outlook
PPL delivered ongoing earnings of $1.81 per share in Q4 2025, a 7.1% increase year-over-year, meeting its financial goals and maintaining reliable service to over 3.5 million customers. Management projects 2026 EPS between $1.90 and $1.98 per share (midpoint $1.94), representing roughly 7.2% growth over 2025.
3. Extended Growth Targets and Capex Plan
The company extended its annual EPS growth target of 6%–8% through at least 2029, aiming to trend toward the upper end over time. It also raised its capital expenditure plan to $23 billion for 2026–2029 (from $20 billion), focusing on grid modernization and expanded generation capacity in Kentucky.