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PPL Corporation (PPL): A Bull Case Theory

By Ricardo Pillai | October 21, 2025, 10:40 PM

We came across a bullish thesis on PPL Corporation on Beat the TSX (BTSX-20)’s Substack by Beat the TSX-27 Strategy. In this article, we will summarize the bulls’ thesis on PPL. PPL Corporation's share was trading at $37.08 as of September 29th. PPL’s trailing and forward P/E were 27.61 and 18.87 respectively according to Yahoo Finance.

Oil Natural gas Pipeline
Pixabay/Public Domain

Pembina Pipeline Corporation (PPL) reported Q2 2025 EBITDA of $1.013 billion, aligning with expectations but down 7% year-over-year. While the quarter itself may appear uninspiring at first glance, the company’s real momentum lies in its robust lineup of growth initiatives and strategic positioning. PPL recently settled a 10-year agreement with shippers on the Alliance Pipeline, which had weighed on the stock, while over $1 billion of conventional growth projects—including Fox Creek Namao and Taylor Gordondale—are approaching final investment decisions (FID) in late 2025 or early 2026.

The company is also quietly advancing in the underappreciated data center power market, signaling a new growth avenue that investors have yet to fully price in, alongside a significant project with Dow expected to reach FID by year-end. Incremental expansions, such as a $145 million optimization of the Prince Rupert LPG terminal and PGI deals securing long-term customer contracts, further reinforce Pembina’s strategic execution. Capital discipline remains strong, with a 5% trimming of the RFS IV budget, while guidance has been narrowed and the 2025 capital program increased to $1.3 billion to reflect all ongoing activity.

Despite narratives around “no growth,” the combination of near-term project catalysts, strengthened customer relationships, and steady dividend returns positions PPL attractively for investors. With a current yield of 5.4%, slightly below its five-year average of 6.1%, Pembina offers both stability and upside potential through strategic execution. The company exemplifies disciplined, customer-focused infrastructure growth, making it a compelling addition for investors seeking dependable cash flow and measured expansion, particularly within the BTSX-27 framework.

Previously we covered a bullish thesis on Evergy, Inc. (EVRG) by Hidden Market Gems in April 2025, which highlighted the company’s defensive positioning, essential local utility services, low volatility, and high yield amid macro uncertainty. The stock has appreciated approximately 15.17% since our coverage. The thesis still stands as EVRG remains resilient. Beat the TSX-27 Strategy shares a similar view but emphasizes PPL’s growth initiatives and project pipeline.

PPL Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held PPL at the end of the second quarter which was 43 in the previous quarter. While we acknowledge the potential of PPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW

Disclosure: None. 

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