PPL Earnings: Increased Capital Investment Plan Supports Extended Growth Outlook

We are maintaining our $29 per share fair value estimate for PPL after the company reported full-year 2023 operating earnings of $1.60 per share compared with $1.41 in 2022. The company narrowed its full-year 2024 EPS guidance range to $1.63-$1.75, in line with our estimate. The company's 6%-8% annual earnings and dividend growth outlook was extended through 2027, consistent with our 7% earnings growth estimate. The company also announced a 7.3% dividend increase, in line with our expectations. PPL trades at a 9% discount to our fair value estimate as of Feb. 15 in a sector we view as 11% undervalued. The company has near-term regulatory clarity, with no rate cases planned across its service territories in 2024, after the company received a better-than-expected outcome at its Kentucky subsidiary.