Price Target Increase#
BofA Securities has raised its price target for Alliant Energy (NASDAQ:LNT) from $73 to $77, while maintaining a Buy rating on the utility company's shares. Currently, the stock is trading at $70.97, suggesting a potential upside of about 7% based on the average target from analysts. However, some analyses indicate that the stock might be overvalued compared to its Fair Value estimate.
Earnings Forecast Adjustments#
The firm anticipates that Alliant Energy will report ongoing earnings per share (EPS) of $0.79 for the first quarter of 2026. This figure is lower than last year's EPS of $0.83 and slightly below the consensus estimate of $0.80 per share. Notably, three analysts have revised their earnings forecasts downward for the upcoming period. The company has benefited from increased rates in Wisconsin and Iowa, as well as from investments in renewable energy.
Financial Challenges#
Despite these benefits, Alliant Energy faces challenges such as unfavorable weather conditions, higher depreciation costs, increased financing expenses, and rising operations and maintenance costs, according to BofA Securities analyst Ross Fowler.
Long-term Earnings Estimates#
BofA Securities has updated its earnings per share estimates for fiscal years 2026, 2027, and 2028 to $3.45, $3.66, and $4.00, respectively. This adjustment reflects the incorporation of actual data from 2025. The increase in the price target is linked to these updated earnings estimates and a shift to a 2028 valuation year, resulting in an electric multiple of 16.2x, down from 16.5x previously.
Recent Developments#
In addition to the price target increase, Alliant Energy has announced a $1 billion common stock distribution agreement with several financial institutions, including Barclays Capital Inc. and Goldman Sachs & Co. LLC. This agreement allows the company to sell shares on the Nasdaq Global Select Market. Furthermore, the company’s board has declared a quarterly cash dividend of $0.5350 per share, payable on May 15, 2026. Analyst firms have shown interest in Alliant Energy, with BMO Capital raising its price target to $79.00 and RBC Capital initiating coverage with a target of $82.00, citing growth in data centers and projected rate base growth.