Madison, Wisconsin-based Alliant Energy Corporation (LNT) operates as a utility holding company that provides regulated electricity and natural gas services. Valued at $14.7 billion by market cap, the company supplies electricity, natural gas, and water to residential and commercial customers.
Shares of this utility holding company have underperformed the broader market considerably over the past year. LNT has gained 13.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024 alone, LNT’s stock rose 11.8%, compared to the SPX’s 16.5% rise on a YTD basis.
Narrowing the focus, LNT has also lagged behind the Vanguard Utilities Index Fund ETF Shares (VPU). The exchange-traded fund has gained about 17.5% over the past year. Moreover, the ETF’s 17.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Aug. 1, LNT shares closed up more than 1% after reporting its Q2 earnings results. Its adjusted EPS declined 10.9% year over year to $0.57. The company’s revenue stood at $894 million, down 2% from the year-ago quarter. LNT reaffirmed its full-year adjusted EPS and expects it to be between $2.99 and $3.13.
For the current fiscal year, ending in December, analysts expect LNT’s EPS to grow 8.9% to $3.07 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion. Moreover, the company failed to surpass its consensus EPS estimate by 19.7% in the previous quarter.
Among the 10 analysts covering LNT stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings and five “Holds.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Aug. 6, Scotiabank analyst Andrew Weisel maintained a “Buy” rating on LNT with a price target of $58.
The mean price target of $57.39 represents a marginal premium to LNT’s current price levels. The Street-high price target of $62.50 suggests an upside potential of 8.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
