UPDATE: Morgan Stanley Initiates PPL at Equal-Weight on Transition

In a report published on Tuesday, Morgan Stanley analyst Rajeev Lalwani initiated coverage on PPL (NYSE: PPL) with an Equal-Weight rating and a $32 price target.

In the report, Morgan Stanley stated, "PPL is transitioning from a diversified utility to a lower-risk regulated company, in our view. In the interim, we see valuation / EPS as weighed down by weaker power prices, lower FX rates, and UK uncertainty. This is offset by an attractive yield, strong balance sheet, and merchant optionality."

PPL closed on Monday at $30.89.