Jefferies & Company Reports on PPL

Jefferies & Company commented on PPL PPL in a report released today. In the report, Jefferies was positive in its assessment of the company. Jefferies writes, "We disagree with investors who use a discount multiple for the UK utility businesses. UK investors trade regional electric companies based on premium/discount to regulatory asset values (resulting in lower P/E valuations than US companies). The problem with this valuation approach is that UK REC's enjoy better return on equity, longer stay out periods and have the ability to use double leverage since their rates are established using a hypothetical capital structure." Jefferies currently has a Buy rating on PPL and a price target of $32. Shares of PPL closed at $27.12 on Thursday.