BofA/Merrill analyst Julien Dumoulin-Smith upgraded PPL Corp to Neutral with a $30 price target after its Q2 earnings beat and backed Ofgem expectations. The analyst notes however that the stock has underperformed its peers by nearly 15% year-to-date because of its lower premium to Regulatory Asset Value for its UK business and sees "substantial negativity" weighing further on shares based on the impact of GBP F/X rates and UK's RIIO-ED2 rate review process. Dumoulin-Smith also sees a "more balanced risk-reward" after the management backed its dividend payout expectations.