UPDATE: Bank Of America Reiterates On PPL Following Spin-Off Announcement

In a report published Wednesday, Bank of America analyst Brian Chin reiterated a Buy rating on

, and raised the price target from $36.00 to $39.00. In the report, Bank of America noted, “On 6/10/14 PPL Corp. announced it has agreed to spin off PPL Supply, its ~10GW merchant power business, to shareholders while merging the new entity with ~5GW of power plants mostly in NJ, MD, and Texas owned by Riverstone Holding. "The new entity will be named Talen Energy and will be listed on the NYSE. PPL shareholders will receive 65% of the combined company and Riverstone will receive the remaining 35% interest. The deal is expected to close in 1Q or 2Q 2015 after mandatory approvals from FERC, the DOJ, the FTC, the NRC, and the PA PUC.” PPL closed on Tuesday at $34.69.