PPL Corp. upgraded to Neutral from Underperform at Macquarie
Macquarie analyst Angie Storozynski upgraded PPL Corp. to Neutral from Underperform with a price target of $32.50, up from $27 saying an M&A deal is increasingly likely as it would solve the company's balance sheet and dividend problems. The analyst said speculation of a AGR merger makes sense given the combination of their US businesses/balance sheets makes sense and cost benefits. AGR would contribute a strong balance sheet, grow its size/trading liquidity, and avoid another earnings CAGR reset, which would be inevitable on a standalone basis. PPL would contribute decent regulated utilities in good jurisdictions, strong management track record, while avoiding a dividend cut or equity raise, Storozynski wrote in a note to investors.