PPL Corporation Hikes Dividend 4.6% and Sees Price Target Lifted to $42 by Morgan Stanley
Morgan Stanley boosted its PPL price target to $42 from $40, maintained an Overweight rating after utilities underperformed the S&P 500. PPL raised its quarterly dividend 4.6% to $0.285 per share and upped its 2026–2029 capital investment plan to $23 billion with a 10.3% average annual rate-based growth forecast.
1. Analyst Upgrade and Price Target Increase
On February 20, Morgan Stanley analyst David Arcaro raised PPL Corporation’s price objective to $42 from $40 while maintaining an Overweight rating, citing recent underperformance in the utility sector and balanced prospects for data center pipeline investments.
2. Quarterly Dividend Increase
PPL approved a 4.6% rise in its quarterly common dividend to $0.285 per share and set a revised business plan targeting 4%–6% annual dividend growth to reinforce shareholder returns.
3. Expanded Capital Investment Plan
The company increased its capital investment outlook to $23 billion for 2026–2029, up from $20 billion for 2025–2028, including approximately $5.1 billion allocated to infrastructure projects in 2026, excluding partnership contributions.
4. Long-Term Growth Outlook
PPL forecasts an average annual rate-based growth of 10.3% through 2029, driven by its regulated electricity operations in Kentucky, Pennsylvania and Rhode Island, alongside growth in diversified utility and independent power producer units.