UPDATE: Jefferies Downgrades PPL On Lower Assumed Earnings Power

In a report published Monday, Jefferies analyst Paul B. Fremont downgraded the rating on

from Buy to Hold, and lowered the price target from $39.00 to $37.00. In the report, Jefferies noted, “We are downgrading PPL to Hold from Buy based on lower assumed earnings power at the company's UK businesses. Due to the strong US Dollar and the loss of incentive revenues as the company's rates are reset in the new rate plan we are lowering our 2016-17 EPS estimates. At its current share price we believe PPL is fair value and already includes the upside from the proposed spin-off of Talen Energy.” PPL closed on Friday at $36.36.