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On Monday, BMO Capital Markets increased its price target on Alliant Energy stock (NASDAQ:LNT) from $60.00 to $66.00, while keeping a Market Perform rating on the shares. The utility company, currently trading at $62.81 with a market capitalization of $16.15 billion, shows signs of being overvalued according to InvestingPro analysis. The adjustment follows Alliant Energy’s successful navigation of challenging weather conditions to post full-year 2025 earnings per share (EPS) of $3.04. This figure slightly exceeds both BMO’s and the consensus estimates of $3.03 and $3.02, respectively, and falls within the company’s updated guidance range of $2.99 to $3.06. With a P/E ratio of 24.48 and an impressive track record of maintaining dividend payments for 55 consecutive years, the stock offers a current dividend yield of 3.23%. InvestingPro subscribers can access 6 additional key insights about Alliant Energy’s financial health and growth potential.
According to BMO Capital’s analyst, Alliant Energy’s management has reaffirmed its 2025 guidance, projecting EPS to be between $3.15 and $3.25, closely aligned with BMO’s and consensus estimates of $3.23 and $3.22, respectively. The fourth quarter of 2024 was relatively uneventful; however, the company did reach an important milestone by securing an agreement in principle for a data center in Wisconsin. The stock’s low beta of 0.6 and consistent dividend growth of 12.15% over the last twelve months underscore its defensive characteristics.
Alliant Energy is expected to provide updates to its capital plan in the first quarter of 2025 to accommodate the additional load from the data center. BMO Capital believes that Alliant Energy’s continued achievements in economic development, along with low regulatory risk, could lead to increased EPS and potential for multiple expansion over time.
Despite the potential for growth, BMO Capital’s stance remains at Market Perform, citing that the stock is currently trading at approximately a 9% premium. The firm’s updated mark-to-market/sum-of-the-parts target price of $66 per share reflects these considerations.
In other recent news, Alliant Energy Corporation reported its fourth-quarter earnings, surpassing analyst expectations. The company posted adjusted earnings per share of $0.70, beating the consensus estimate of $0.68. However, revenue for the quarter was $976 million, which fell short of the anticipated $1.11 billion. For the full year 2024, Alliant Energy’s adjusted earnings rose to $3.04 per share, up from $2.82 in 2023, while annual revenue slightly decreased to $3.98 billion from $4.03 billion the previous year. The company reaffirmed its 2025 earnings guidance, projecting a range of $3.15 to $3.25 per share, aligning with the $3.20 analyst consensus. Alliant Energy highlighted the completion of 1,500 megawatts of solar generation investments in 2024 as a significant achievement. The company’s 2025 outlook is based on assumptions of normal temperatures, stable economic conditions, and successful execution of its capital expenditure plans, including renewable energy projects. Additionally, the company reported an increase in utility electric sales and gas sales and transportation volumes compared to the previous year.
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