On Wednesday, Jefferies, a global investment banking firm, updated its outlook on Alliant Energy (NASDAQ:LNT), raising the stock's price target to $69 from $67 while retaining a Hold rating. The adjustment reflects the firm’s response to Alliant Energy's increased growth forecasts.
The company has indicated an expected compound annual growth rate (CAGR) in its rate base of 10% through 2028, alongside a projected growth in electric sales load of 3-5% through 2032. These projections suggest that the earnings per share (EPS) CAGR could surpass 7%, with Jefferies estimating a 7.3% EPS CAGR from 2024 to 2030.
Notably, InvestingPro highlights that Alliant Energy has maintained dividend payments for 54 consecutive years, with a current dividend yield of 3.11%.
Despite the positive growth outlook, there are concerns regarding whether management will need to revise its guidance upwards. Alliant Energy's elevated capital expenditures (CapEx) are putting pressure on its credit metrics, which are close to the threshold that could trigger a downgrade.
The company is known for its conservative stance when it comes to its demand pipeline. Updates on this front are anticipated in the first half of 2025. Jefferies has chosen to maintain its Hold rating on the stock, citing that the improving conditions are already reflected in the stock's premium price.
Alliant Energy's strategic plans and financial health will continue to be watched closely by investors as the company navigates its growth trajectory and manages its capital spending.
In other recent news, Alliant Energy Corporation has been the subject of several noteworthy developments. The company recently reported an increase in third-quarter earnings, with earnings per share (EPS) rising to $1.15 from $1.05 in the same quarter of the previous year. This exceeded expectations, compared to the consensus of $1.10 and BMO's estimate of $1.09.
Alliant Energy also adjusted its 2024 earnings guidance, narrowing the range to $2.99-3.06, and provided its first outlook for 2025, projecting EPS in the range of $3.15-3.25. This projection is slightly lower than the $3.27 and $3.26 previously anticipated by BMO and consensus estimates, respectively.
On the analyst front, BMO Capital Markets adjusted its outlook on Alliant Energy, reducing the firm's price target on the stock to $61 from the previous $65 but maintaining a Market Perform rating.
In addition to earnings and revenue results, Alliant Energy has reaffirmed its commitment to achieving a long-term EPS growth rate of 5-7% based on the midpoint of the 2024 guidance. The company also plans to expand data center capacity and transition to renewable energy, with significant capital expenditure planned through 2028. These are recent developments that investors should keep an eye on.
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