On Monday, BMO Capital Markets adjusted its outlook on Alliant Energy (NASDAQ:LNT), reducing the firm's price target on the stock to $61 from the previous $65. The analyst maintained a Market Perform rating on the shares.
Alliant Energy recently reported earnings that exceeded expectations, posting a quarterly result of $1.15 per share compared to the consensus of $1.10 and BMO's estimate of $1.09. Despite the beat, the company adjusted its 2024 earnings guidance, narrowing the range to $2.99-3.06 by decreasing the top end by 7 cents.
The revised guidance midpoint is now 3 cents lower than what BMO and the consensus had estimated before the earnings release.
Additionally, Alliant Energy has provided its first outlook for 2025, projecting earnings per share in the range of $3.15-3.25, with a midpoint of $3.20. This forecast falls short of the $3.27 and $3.26 previously anticipated by BMO and consensus estimates, respectively.
The company also reaffirmed its commitment to achieving a long-term earnings per share growth rate of 5-7% based on the midpoint of the 2024 guidance.
The adjustment in BMO's price target for Alliant Energy reflects a "mark to market" of their Sum of the Parts (SOTP) valuation, as noted by the firm's analyst. This valuation method involves assessing each segment of the company's business separately before combining them to form an overall value.
InvestingPro Insights
To complement BMO Capital Markets' analysis of Alliant Energy (NASDAQ:LNT), recent data from InvestingPro provides additional context for investors. Alliant Energy's market capitalization stands at $14.82 billion, with a P/E ratio of 22.44, indicating how the market currently values the company's earnings.
InvestingPro Tips highlight Alliant Energy's strong dividend history, noting that the company "has raised its dividend for 21 consecutive years" and "has maintained dividend payments for 54 consecutive years." This consistent dividend growth aligns with the company's reaffirmed commitment to a 5-7% long-term earnings per share growth rate. The current dividend yield is 3.33%, which may be attractive to income-focused investors.
Despite the lowered guidance for 2024 and the initial 2025 outlook falling short of previous estimates, InvestingPro data shows that Alliant Energy has been "profitable over the last twelve months," with a revenue of $3,966 million. The company's ability to maintain profitability could provide some reassurance to investors in light of the adjusted earnings projections.
For those interested in a deeper analysis, InvestingPro offers 6 additional tips for Alliant Energy, providing a more comprehensive view of the company's financial health and market position.
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