Analysts’ mean target price of $31.46 for PPL (PPL), among this year’s most battered stocks, implies an 11% upside to its current price of $28.41. Of the 14 analysts covering PPL, two recommend “strong buy,” five recommend “buy,” six recommend “hold,” and one recommends “sell.”
PPL, an almost entirely regulated utility, generates more than two-thirds of its total revenue from the United Kingdom. The rest of its revenue comes from Kentucky and Pennsylvania. Its 5.8% yield is much higher than broader utilities’ average yield, and it’s the S&P 500 Utilities’ (XLU) top-yielding stock.
Peers’ price targets
Analysts’ mean target price of $48.50 for PPL peer Xcel Energy (XEL) implies a 6% upside to its current market price of $45.86 over the next 12 months. Meanwhile, their mean target price of $46.75 for Southern Company (SO), the third-largest utility by market capitalization, implies a ~2% downside. Southern Company has a long dividend payment history, having paid a cash dividend for 282 consecutive quarters. To learn more, read How Southern Company’s Dividend Profile Looks Next to Its Peers.