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On Monday, BMO Capital Markets updated its outlook on Ameren Corp . (NYSE: AEE), increasing the price target from $105.00 to $106.00 while keeping an Outperform rating on the stock. According to InvestingPro data, the company, currently valued at $26.55 billion, is trading slightly above its Fair Value, with analyst targets ranging from $88 to $113. BMO anticipates Ameren to unveil its first-quarter earnings for 2025 on May 2, with an expected earnings per share (EPS) of $1.09, which marks an approximate 7% year-over-year increase. This forecast aligns with the median consensus EPS of $1.08 from FactSet and Bloomberg. InvestingPro data shows that 5 analysts have recently revised their earnings expectations upward for the upcoming period.
The report from BMO Capital suggests that there will likely be minimal fundamental updates from Ameren following a comprehensive capital plan refresh in the fourth quarter. The company, currently focused on executing its plan, is expected to draw investor attention towards broader industry macroeconomic themes. These include the potential impacts of tariffs, industrial sales related to these tariffs, and possible modifications to the Inflation Reduction Act (IRA).
Investors are also anticipated to look for updates on regulatory matters and Ameren’s initial response to the passage of SB4 legislation. BMO’s revised price target is based on a mark-to-market/sum-of-the-parts (MTM/SOTP) analysis.
Ameren, a utility holding company, serves electric and gas customers across several states and has been navigating a landscape shaped by regulatory changes and economic factors. The company has maintained dividend payments for 28 consecutive years, with an impressive 12.7% dividend growth in the last twelve months. The company’s upcoming first-quarter results will provide investors with an updated view of its performance and strategic direction amidst these conditions. For deeper insights into Ameren’s financial health and detailed analysis, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ameren Corporation (NYSE:AEE) reported its full-year 2024 earnings per share (EPS) at $4.63, aligning with both BMO Capital Markets’ and consensus estimates. The company also confirmed its 2025 EPS guidance range of $4.85 to $5.05, consistent with BMO’s and consensus estimates of approximately $4.95. Additionally, Ameren successfully issued $750 million in senior notes due in 2035, with net proceeds expected to support general corporate purposes, including infrastructure investments and debt repayment. The company’s updated five-year capital expenditure plan, valued at $26.3 billion, reflects a 20% increase from the previous plan and is anticipated to boost rate base growth to 9.2% through 2029.
Analysts have responded positively to these developments, with BMO Capital Markets raising its price target for Ameren shares to $105, maintaining an Outperform rating. Similarly, Mizuho (NYSE:MFG) Securities also lifted its price target to $105, citing the company’s enhanced capital plan and expected growth in weather-normalized sales. Jefferies, noting Ameren’s expanded capital expenditures and projected EPS growth, increased its price target to $112 while keeping a Buy rating. Meanwhile, Ameren announced the resignation of board member Kimberly J. Harris due to health concerns, leaving a vacancy that the company has yet to fill. These developments highlight Ameren’s strategic initiatives and the ongoing attention from analysts and investors.
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