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Research Alert: CFRA Maintains Buy Opinion On Shares Of Ppl Corporation

05/07/2021 12:49

04:45 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price by $4 to $34, 14.2x our 2022 EPS estimate, a discount to peers. We cut our 2021 EPS estimate to $2.09 from $2.47 and our 2022 estimate to $2.40 from $2.62. PPL reports Q1 EPS of $0.28 vs. $0.67, missing the S&P Capital IQ consensus estimate by $0.36 due to a restatement of WPD's results as discontinued operations associated with the U.K. utility business sale announcement. Excluding the discontinued operations, Q121 EPS of $0.28 were $0.01 above Q120. PPL announced agreements to sell WPD to National Grid for GBP7.8 billion and, in a separate transaction, to acquire The Narragansett Electric Company in Providence, R.I. from another National Grid subsidiary for $3.8 billion. We expect the WPD transaction to close by the end of July, while the Narragansett transaction closes at the end of Q1 2022. We believe these transactions will help remove an overhang on the stock from since the intended sale of WPD was announced.