Analysts’ target prices
Analysts’ consensus gave PPL (PPL) stock a mean target price of $32.1, which implies an estimated upside of 4.3% for the next 12 months. Currently, PPL is trading at $30.8.
Among the 14 Reuters-surveyed analysts tracking PPL, eight recommended a “hold,” two recommended a “strong buy,” two recommended a “buy,” and two recommended a “sell.”
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PPL stock is trading at 12.5x its forward earnings—lower than peers’ average multiple of 17x–18x. PPL’s historical average valuation is close to 14x. PPL stock appears to be at a notable discount compared to its peers. Along with PPL’s fair expected earnings growth, its premium dividend yield makes it stand tall among its peers. Currently, PPL is offering a yield of 5.3%, which is higher than utilities’ (XLU) average of 3.1%.
Among the 15 analysts covering Xcel Energy (XEL), two recommended a “strong buy,” two recommended a “buy,” and ten recommended a “hold.” Analysts’ mean target price of $55.8 for Xcel Energy stock implies flattish movement compared to its current price of $56.0. Xcel Energy stock is trading at 21x its forward earnings, which is higher than PPL and peers’ average. Xcel Energy offers a yield of 3%. So far, the stock has risen 14% in 2019.