Madison, Wisconsin-based Alliant Energy Corporation (LNT) is a utility holding company with a market cap of $16.7 billion. It provides regulated electric and natural gas services to customers, with a diversified fuel mix that includes coal, natural gas, and renewable energy sources.
This utility company has lagged behind the broader market over the past 52 weeks. Shares of LNT have gained 16.2% over this time frame, while the broader S&P 500 Index ($SPX) has soared 19%. Nonetheless, on a YTD basis, the stock is up 10.5%, compared to SPX’s 10% rise.
Narrowing the focus, LNT has also underperformed the Utilities Select Sector SPDR Fund’s (XLU) 16.6% return over the past 52 weeks and 14.2% surge on a YTD basis.
On Aug. 7, LNT released its Q2 results, and its shares plunged marginally in the following trading session. The company’s revenue increased 7.5% year-over-year to $961 million, driven by a robust rise in electric utility sales and the addition of new retail electric customers. Moreover, its adjusted EPS of $0.68 advanced 19.3% from the same period last year, surpassing consensus estimates by 9.7%.
For the current fiscal year, ending in December, analysts expect LNT’s EPS to grow 5.6% year over year to $3.21. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on six “Strong Buy,” five "Hold,” and one “Strong Sell” rating.
This configuration is slightly more bullish than two months ago, with five analysts suggesting a “Strong Buy” rating.
On Aug. 12, Mizuho Financial Group, Inc. (MFG) analyst Anthony Crowdell maintained a "Hold" rating on LNT and set a price target of $70, implying a 7.1% potential upside from the current levels.
The mean price target of $66.91 represents a 2.4% premium from LNT’s current price levels, while the Street-high price target of $72 suggests an upside potential of 10.1%.
On the date of publication, Neharika Jain 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.
