2023-06-26 11:57:41 ET
Alliant Energy ( NASDAQ: LNT ) +1.8% in Monday's trading after Bank of America upgraded the stock to Buy from Neutral with a $58 price target, raised from $55, noting recent Iowa Utilities Board decisions in support of advance ratemaking for solar companies.
BofA's Julien Dumoulin-Smith said the decisions suggest an improvement in the perception of Iowa's regulatory climate that will drive a re-rating in the stock.
Alliant Energy ( LNT ) trades at just a 3% premium to the broader utility sector on 2025 consensus EPS, which Dumoulin-Smith said "suggests a particularly attractive buying opportunity for what has historically been a premium stock."
The analyst said he sees Alliant ( LNT ) as "continuing to offer one of the more high visibility EPS trajectories in the space," with a compound annual growth rate of 6.7% through 2026 from the 2022 guidance midpoint of $2.74.
More on Alliant Energy:
- Financial and valuation comparison to sector peers
- Analysis: Alliant Energy Remains A Stable Pick For Long-Term Investors
- Stock price return: Down 6.5% YTD, down 9.5% in the past 12 months
For further details see:
Alliant Energy raised to Buy at BofA on more constructive Iowa stance