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Friday, Jefferies made a positive adjustment to Alliant Energy ’s (NASDAQ:LNT) financial outlook, raising the price target from $66.00 to $70.00 while maintaining a Hold rating on the shares. The research firm anticipates that Alliant Energy will exceed its own guidance by fiscal year 2029 (FY29), following an increase in long-dated capital expenditures. The utility company, currently valued at $16.3 billion, has demonstrated remarkable stability with a beta of 0.54 and has maintained dividend payments for 55 consecutive years, according to InvestingPro data.
The updated price target reflects Jefferies’ expectations of Alliant Energy’s capital expenditures, which are projected to reach $1.96 billion through fiscal year 2031 (FY31). This investment is expected to contribute to the company’s growth over the coming years. The company currently generates annual revenue of $3.98 billion and offers investors a dividend yield of 3.19%.
Jefferies’ analysts have adjusted their earnings per share (EPS) compound annual growth rate (CAGR) estimates for Alliant Energy to 6.5% through fiscal year 2027 (FY27). This forecast aligns closely with consensus estimates from other analysts through fiscal year 2028 (FY28). InvestingPro analysis shows analysts expect EPS to reach $3.21 in FY2025, with the stock currently trading at a P/E ratio of 23.6x. Get access to detailed financial metrics and 6 additional ProTips with an InvestingPro subscription.
The firm’s analysis indicates that while Alliant Energy’s capital expenditures are set to increase in the longer term, the company’s performance will likely surpass its own projections. Jefferies predicts that the utility company will see further improvement in fiscal year 2030 (FY30) after outperforming guidance in the previous year.
In summary, Jefferies’ revised price target and hold rating for Alliant Energy stock are based on the firm’s projections of capital expenditures and earnings growth, suggesting a steady upward trajectory for the company’s financial performance in the years ahead.
In other recent news, Alliant Energy Corporation has announced a significant leadership transition with John O. Larsen set to retire as Chairman of the Board after the 2025 Annual Meeting of Shareowners. Patrick E. Allen, a board member since 2011, will succeed Larsen as Board Chair. This change was officially reported in a filing with the Securities and Exchange Commission. Additionally, S&P Global Ratings has downgraded the credit ratings of Alliant Energy Corp. and its subsidiaries due to ongoing weak financial performance. The downgrade is attributed to the company’s substantial capital spending, which has increased debt leverage, with Alliant’s year-end 2024 funds from operations-to-debt ratio falling below the 15% threshold. S&P expects Alliant’s financial measures to be supported by rate case orders and tax credit monetization, projecting an average consolidated FFO to debt of 14% through 2027. The outlook for Alliant Energy and its subsidiaries remains stable, with expectations of balanced funding for its increased capital spending plan.
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