Jefferies lowers Ameren stock price target to $115 from $118, maintains Buy rating

Published 10/07/2025, 11:44
Jefferies lowers Ameren stock price target to $115 from $118, maintains Buy rating

Investing.com - Jefferies lowered its price target on Ameren Corp . (NYSE:AEE) to $115.00 from $118.00 on Thursday, while maintaining a Buy rating on the utility company’s stock. According to InvestingPro data, Ameren currently trades at $95.20, with a market capitalization of $25.7 billion and notably low price volatility.

The research firm described Ameren as "a large-cap lower-risk utility with defensive fundamentals and growth from large load, gen invts, transmission." Jefferies highlighted Missouri ROE trends combined with accelerating rate base and sales growth as key factors driving its estimates. The company’s defensive nature is reflected in its beta of 0.5 and impressive 9% revenue growth over the last twelve months.

Jefferies now places its growth estimates at the high end of Ameren’s 6-8% guidance range and above consensus expectations. The firm noted that Ameren’s risk-adjusted growth profile rivals that of other large-cap utilities. InvestingPro analysis reveals the company has maintained dividend payments for 28 consecutive years, with a current yield of 3%.

Despite the slight reduction in price target, Jefferies emphasized that Ameren trades at a mid-single digit 2026 P/E premium versus the recent double-digit premium seen in the sector. This valuation perspective contributed to the firm’s continued positive outlook.

The research firm concluded that Ameren offers a favorable risk/reward profile, supporting its decision to reiterate the Buy rating despite the modest price target reduction.

In other recent news, Ameren Corporation reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.07, compared to the forecasted $1.05. The company’s revenue reached $2.1 billion, exceeding the anticipated $1.96 billion, marking a strong start to the fiscal year. Ameren also announced a $520 million stock offering, utilizing a forward sale agreement structure, managed by major financial institutions including Goldman Sachs and J.P. Morgan. This move is part of Ameren’s strategy to support its capital program and manage its equity needs. Additionally, Jefferies recently adjusted its outlook on Ameren, lowering the stock price target to $115 while maintaining a Buy rating, citing changes in peer valuation metrics. Jefferies also raised its 2026-2029 earnings estimates, highlighting the company’s robust return on equity improvements and strategic growth initiatives. Furthermore, Ameren declared quarterly dividends for its common and preferred stock, reflecting its commitment to shareholder returns. These developments underscore Ameren’s ongoing efforts in infrastructure investments and financial management.

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