With a market cap of $15.5 billion, Alliant Energy Corporation (LNT) is a Wisconsin-based public utility holding company that provides regulated electricity and natural gas services to customers in the Midwest. Through its two primary subsidiaries, Interstate Power and Light Company (IPL) in Iowa and Wisconsin Power and Light Company (WPL) in Wisconsin, Alliant Energy serves residential, commercial, and industrial customers.
Shares of this utility holding company have surpassed the broader market over the past year. LNT has gained 25.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.5%. However, in 2025, LNT’s stock rose 2.5%, compared to SPX’s 2.9% rise on a YTD basis.
Narrowing the focus, LNT has lagged behind the Vanguard Utilities Index Fund ETF Shares (VPU). The exchange-traded fund has gained about 29.6% over the past year. Moreover, the ETF’s 4.7% climb in 2025 outpaces the stock’s return on a YTD basis.
Alliant Energy's stock fell 3.8% after its Q3 earnings release on Oct. 31, as the company tightened its 2024 earnings guidance to a range of $2.99 to $3.06 per share. Despite the decline, the company achieved an EPS of $1.15, marking a 9.5% increase from $1.05 in the same quarter the previous year. This result was driven by higher revenue requirements from capital investments at Wisconsin Power and Light (WPL) and favorable income tax timing and surpassed the consensus estimate of $1.11. Total revenues were $1.081 billion, slightly up from $1.077 billion in the prior year, aligning with market expectations.
The company also announced plans to support the establishment of two data centers in Cedar Rapids, Iowa, expected to add 1.1 gigawatts of demand by the end of 2028. This initiative aligns with the company's economic development strategy and is anticipated to boost peak demand by nearly 20% over the next five years
Ahead of its FY2024 earnings release next week, analysts expect LNT’s EPS to grow 7.5% to $3.03 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.
Among the 12 analysts covering LNT stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and eight “Holds.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Dec. 12, Scotiabank analyst Andrew Weisel downgraded Alliant Energy to “Sector-Perform” from “Outperform,” but raised the price target to $67 from $64. While the firm expects strong electricity demand in 2025 to benefit the sector, it sees a less attractive near-term outlook for utility stocks.
The mean price target of $62.65 represents a 3.3% premium to LNT’s current price levels. The Street-high price target of $67 suggests an upside potential of 10.5%.
