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On Tuesday, Alliant Energy (NASDAQ:LNT) shares received a positive outlook from Jefferies as analyst Julien Dumoulin-Smith upgraded the stock from Hold to Buy, adjusting the price target to $71 from the previous $70. The analyst highlighted several factors contributing to the optimistic view, including a promising first quarter of 2025 and encouraging developments discussed at the American Gas Association (AGA) conference. The utility company, with a market capitalization of $16.21 billion and a beta of 0.58, has demonstrated strong momentum with an 8.49% year-to-date return. According to InvestingPro analysis, while the stock appears overvalued at current levels, it boasts an impressive track record of 21 consecutive years of dividend raises.
Alliant Energy, which trades on the NASDAQ under the ticker LNT, has been identified by Jefferies as having emerging offensive attributes. These include potential customer growth related to the 45Z tax credit and benefits from the Federal Energy Regulatory Commission’s (FERC) interconnection processes. Dumoulin-Smith noted that while an increase in earnings per share (EPS) compound annual growth rate (CAGR) is not guaranteed, upcoming events such as the third quarter of 2025 capital expenditure refresh and the Wisconsin Power and Light (WPL) rate case are expected to set a positive stage for growth rates of 7% or higher. The company currently offers a 3.22% dividend yield and trades at a P/E ratio of 21.67. InvestingPro subscribers can access detailed analysis of Alliant Energy’s valuation metrics and growth potential in the comprehensive Pro Research Report, along with 6 additional key ProTips about the company’s performance.
The analyst also addressed the recent concerns over the Inflation Reduction Act (IRA) that have impacted Alliant Energy’s stock. According to the analyst, these fears have provided a fresh entry point for investors. Additionally, the adept management of tariffs and the safe harboring of wind projects were mentioned as factors that alleviate concerns.
Jefferies’ upgrade comes as a sign of confidence in Alliant Energy’s management and future prospects. The company’s stock is now positioned as a Buy, with a slightly increased price target, reflecting the firm’s belief in the utility’s potential for growth and resilience in the face of market uncertainties.
In other recent news, Alliant Energy reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $0.83, surpassing the forecast of $0.69. The company also exceeded revenue expectations, posting $1.13 billion against a forecast of $1.11 billion. BMO Capital Markets responded by raising the price target for Alliant Energy to $65, while maintaining a Market Perform rating. Analysts at BMO noted the company’s solid quarterly performance but expressed caution regarding potential changes to the Inflation Reduction Act that could impact the stock’s valuation.
Additionally, Alliant Energy announced plans to offer $500 million in convertible senior notes due in 2028, with an option for initial purchasers to buy an additional $75 million. The proceeds from this offering are intended for debt repayment, reducing commercial paper, or other corporate purposes. Furthermore, Alliant Energy disclosed a distribution agreement to sell common stock shares valued at up to $1.3 billion. The company aims to use the net proceeds from these share sales for general corporate purposes, including debt repayment and funding for construction and acquisitions.
These developments indicate Alliant Energy’s focus on strengthening its financial position and supporting future growth through strategic investments and capital management initiatives.
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