Q: I know you like pipes, including ppl. My question is why has ppl underperformed since the highs above $60 in Oct, Nov of 2024.
I am ready to buy ppl, but am looking at the entry point. It is still retrenching, so wondering if there is any reason. Is there reason to believe it has based, in which case I would enter, and hold for quite some time, for div and capital appreciation. Thanks
I am ready to buy ppl, but am looking at the entry point. It is still retrenching, so wondering if there is any reason. Is there reason to believe it has based, in which case I would enter, and hold for quite some time, for div and capital appreciation. Thanks
5i Research Answer:
In mid-December, PPL provided a business outlook, which we think was decent, but did result in a bit of a downward move in the stock and also saw it get a broker downgrade. The sector has also been a bit weaker with general inflation, rate and economic concerns. But, it is still up 15% in the past year, offers a solid, growing dividend, and consensus calls for low, but steady, growth, in the 3% to 5% range. At 16X earnings, we think it looks good for income primarily, but with at least some growth potential.