PPL Corporation (NYSE:PPL)’s subsidiary praised for Project FALCON
PPL Corporation (NYSE:PPL), the US-based energy and utility holding company, said its U.K. subsidiary Western Power Distribution (WPD) has been praised for its low carbon initiative, called Project FALCON (Flexible Approaches to Low Carbon Optimised Networks). The project intends to reduce levels of carbon emission within the electricity network. FALCON, which is receiving recognition in the UK as well as globally, is installing innovative technology, enabling substations to communicate across a lower bandwidth and overall improving network communications.
On the other hand, PPL’s subsidiary PPL Electric Utilities has announced some positive feedbacks on its smart grid project, which the company completed a year ago. According to the company, customers in Dauphin and Cumberland are already experiencing 38% improvement in service reliability, which means no power interruptions.
In addition, PPL Electric Utilities and Public Service Electric & Gas Company said it is expected to start construction of the Susquehanna-Roseland power line project in Delaware Water Gap National Recreation Area on September 3, 2013. The project, expected to complete in six months, maintain the reliability of the electric grid for people in the Northeast.
Recently, PPL Corp. reported its second quarter earnings, beating analysts estimate. The electricity provider announced quarterly revenues of $3.45 billion, up 35.3% on year-over-year basis. The increase in revenues was driven by an increase in utility and electricity and gas sales. As of Jun 30, 2013, PPL had cash and cash equivalents of $711 million.
Backed by strong performance, PPL Corporation increased its full-year 2013 earnings guidance in the range of $2.25-2.40 per share from the earlier projection of $2.15-$2.40 a share.
Following excellent earnings growth and improved guidance, Zacks reiterated PPL Corp.’s stock at “neutral” rating. They currently have a $34.00 price target on the stock. In addition, analysts at Morgan Stanley had set an “equal weight” rating with $32.00 price target; Ladenburg Thalmann, on the other hand, lowered their price target from $34.00 to $32.00, giving a “neutral” rating on the stock. TheStreet reaffirmed a “buy” rating on shares of PPL Corp.