Barclays (LON:BARC) made an adjustment to Alliant Energy 's (NASDAQ:LNT) financial outlook, raising its price target from $55.00 to $61.00 while maintaining an Equalweight rating on the stock. The revision follows a series of virtual meetings with Alliant Energy's CEO Lisa Barton, CFO Robert Durian, and Investor Relations, which provided investors with insights into the company's progress and investment thesis.
The discussions highlighted Alliant Energy's successful navigation past its IPL rate review and the emergence of positive load trends within the Iowa territory. As the company approaches its third-quarter update, Barclays analysts expect Alliant to present its FY25 earnings per share (EPS) guidance during the earnings call, with a forecast of $3.26 per share compared to the Bloomberg consensus of $3.28. Additionally, a comprehensive business plan update is anticipated, including capital expenditure (CapEx) details, regulatory asset base (RAB), load, and financing, with a particular focus on generation and new battery storage commitments.
Barclays anticipates that Alliant Energy will outline various scenarios for load growth, particularly in relation to data centers, and projects a 5-7% long-term EPS growth rate regardless of which scenario materializes. The current market consensus and Barclays' own estimates are believed to have already factored in this outlook, with Alliant's valuation reflecting a roughly 8% price-to-earnings (P/E) premium compared to its peers.
The forthcoming third-quarter earnings call is identified as a major catalyst for Alliant Energy. During this call, the company is expected to refine its 2024 EPS guidance range, which currently stands between $2.99 and $3.13, to align with Barclays' estimate of $3.05 and the Bloomberg consensus of $3.07. The call is also set to include the introduction of FY25 EPS guidance, details of the capital plan through 2028, considerations for updated financing, and a dividend update. Further clarity on finalized load and economic growth projects, the potential tax credit opportunity, and the timing of the next rate case filing in Wisconsin are also anticipated from the management.
Alliant Energy Corporation has been the focus of multiple developments. The company's Q2 earnings report showed earnings per share (EPS) of $0.57, below the projected $0.67 by BMO Capital and the broader analyst consensus. Despite this, Alliant Energy confirmed its full-year EPS guidance for 2024, projecting a range between $2.99 and $3.13. Additionally, the company reported a decrease in adjusted operations and maintenance expenses by $20 million compared to the previous year, and an increase in cash flows from operations by approximately $250 million.
Mizuho has raised its price target on Alliant Energy to $61 from $52, maintaining a Neutral rating, following the approval of a rate case settlement for Alliant's subsidiary, Interstate Power and Light, in Iowa. Simultaneously, Ladenburg Thalmann upgraded Alliant Energy's stock from Neutral to Buy, citing potential earnings upside from an Iowa settlement. BMO Capital Markets also revised its outlook on Alliant Energy, raising the stock price target from $58.00 to $60.00, maintaining a Market Perform rating.
Alliant Energy Corporation also announced a public offering of senior debentures totaling $650 million, with the proceeds intended to retire existing debts and for general corporate purposes. Notable underwriters for the offering included Barclays Capital Inc., Goldman Sachs (NYSE:GS) & Co. LLC, and J.P. Morgan Securities LLC. These are recent developments for Alliant Energy Corporation.
InvestingPro Insights
Complementing Barclays' analysis, InvestingPro data provides additional context to Alliant Energy's financial position and market performance. The company's market capitalization stands at $15.31 billion, with a P/E ratio of 24.28, indicating investors' willingness to pay a premium for the stock relative to its earnings.
InvestingPro Tips highlight Alliant Energy's strong dividend history, noting that the company "has raised its dividend for 20 consecutive years" and "has maintained dividend payments for 54 consecutive years." This aligns with the company's current dividend yield of 3.22% and a dividend growth rate of 6.08% over the last twelve months. These factors may be particularly appealing to income-focused investors and support Barclays' view on the company's valuation premium.
The stock's recent performance is also noteworthy, with InvestingPro data showing a 26.61% price total return over the past six months and a 24.51% return over the past year. This positive momentum is further emphasized by the InvestingPro Tip that the stock is "trading near 52-week high," currently at 97.68% of its 52-week high price.
For investors seeking a deeper understanding of Alliant Energy's financial health and market position, InvestingPro offers 7 additional tips and a comprehensive set of financial metrics. This additional information could prove valuable in assessing the company's outlook beyond the upcoming earnings call and business plan update highlighted in the article.
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