Jefferies lowers Alliant Energy stock price target to $69 on tax credit uncertainty

Published 11/07/2025, 11:58
Jefferies lowers Alliant Energy stock price target to $69 on tax credit uncertainty

Investing.com - Jefferies has reduced its price target on Alliant Energy (NASDAQ:LNT) to $69.00 from $71.00 while maintaining a Buy rating on the stock. The utility company, currently trading at $62.60 with a market cap of $16.1 billion, has demonstrated remarkable dividend consistency, having maintained payments for 55 consecutive years according to InvestingPro data.

The price target adjustment comes as tax credit certainty for renewable energy projects remains elusive, with Monday’s executive order further clouding the outlook for renewables.

Jefferies notes that Alliant Energy’s current capital plan is largely secured, with approximately 95% of forecast tax credits either in service or safe harbored before December 31, 2024.

The firm points out that financing and credit metrics for fiscal year 2029 and beyond appear less clear for the utility company.

Jefferies identifies several potential offsetting factors, including further acceleration of data center development, increased load growth, the positive impact of 45Z extension for Alliant’s territories, flexible resource processes, and a potential pivot toward gas.

In other recent news, Alliant Energy has reported significant developments impacting its financial and strategic outlook. The company’s first-quarter earnings showed an increase in earnings per share (EPS) by 21 cents, reaching 83 cents, surpassing both BMO’s estimate of 75 cents and the consensus estimate of 69 cents. Following this, BMO Capital Markets raised its price target for Alliant Energy to $65, while maintaining a Market Perform rating. In addition, Jefferies upgraded Alliant Energy from Hold to Buy, setting a new price target of $71, citing promising developments and potential customer growth related to tax credits.

Alliant Energy also announced plans to offer $500 million in convertible senior notes due in 2028, with an option for additional purchases. The proceeds are intended for debt repayment, reducing commercial paper, or other corporate purposes. Wolfe Research upgraded the company’s stock rating from Peerperform to Outperform, emphasizing the clarity around tax credits and identifying Alliant Energy as a "regulated data center winner." The research firm set a price target of $68, highlighting a 20% premium potential.

Furthermore, the company held its annual shareholder meeting, where all directors were elected, executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent auditor. A shareholder proposal on greenhouse gas emissions was not approved. These recent updates reflect Alliant Energy’s strategic initiatives and financial performance, drawing attention from analysts and investors alike.

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