Wolfe Research has raised its 12-month price target on PPL Corp to $42 from $41 and continues to carry an Outperform rating on the utility's shares. The firm points to an improved earnings trajectory and expanded capital commitments as the basis for the adjustment.
At the center of Wolfe's recalibration is PPL's upward revision to its earnings-per-share growth outlook. PPL said its EPS growth profile is now near the top of a stated target range of 6-8 percent. The company reported 2025 earnings of $1.81 per share, matching expectations, and provided guidance for 2026 with a range of $1.90 to $1.98 per share.
Looking further out, PPL now anticipates roughly 8 percent EPS growth through 2029, up from a prior 7-8 percent view. Wolfe Research attributes the revised long-range forecast in part to a $3 billion increase in PPL's four-year capital plan. The analyst house used an updated 2028 earnings estimate as the basis for its new target and said it expects the shares to move back to a premium as rate cases are settled and as growth from the BX venture becomes more visible.
Wolfe also flagged a raised forecast for data center load as an upside driver and identified additional opportunities that could support the firm's thesis. On a relative basis, the stock trades at a modest discount to its peer group using Wolfe's 2028 estimate of $2.28 per share.
Market metrics cited in the analysis show PPL with a market capitalization of $27.7 billion, a price-to-earnings ratio of 23.55 and a PEG ratio of 0.72. Separately, InvestingPro analysis referenced in the update indicates the stock appears overvalued when compared to its Fair Value estimate. Investors seeking a deeper dive can consult PPL's Pro Research Report, which is one of a suite of available company reports.
Recent corporate results and financing actions were mixed. PPL announced fourth-quarter and full-year 2025 earnings per share of $0.41, in line with analyst expectations. However, revenue for the quarter missed forecasts, coming in at $2.27 billion versus the anticipated $2.4 billion.
In addition to operating results, PPL revealed plans for a public offering consisting of 20 million equity units with an aggregate stated value of $1 billion. Each unit is to be issued at a stated amount of $50 and includes a contract to purchase PPL common stock at a future date as well as interests in remarketable senior notes issued by PPL Capital Funding, Inc.
Taken together, the analyst upgrade and the company disclosures reflect a mix of reinforcing and cautionary signals: stronger long-range EPS expectations and a larger capital program on one hand, and a near-term revenue shortfall and planned equity issuance on the other.
Below are concise takeaways and identified near-term uncertainties that market participants may weigh when assessing PPL's outlook.