Saint Louis, Missouri-based Ameren Corporation (AEE) is a major public utility holding company that provides electric and natural gas services. Valued at a market cap of $30.4 billion, the company’s energy portfolio is increasingly focused on sustainable transitions, integrating nuclear power with expanding investments in solar, wind, and battery storage technologies.
This utility company has trailed the broader market over the past 52 weeks. Shares of AEE have gained 14.5% over this time frame, while the broader S&P 500 Index ($SPX) has soared 31%. However, on a YTD basis, the stock is up 9.4%, outpacing SPX’s 8.3% rise.
Zooming in further, AEE has outpaced the State Street Utilities Select Sector SPDR ETF (XLU), which soared 13.5% over the past 52 weeks and 6.1% on a YTD basis.
On May 5, AEE delivered mixed Q1 results, and its shares plunged 1.8% in the following trading session. The company’s total operating revenue climbed 3.8% year-over-year to $2.2 billion, but missed analyst estimates by 2.7%, dampening investor confidence. Nonetheless, its EPS of $1.28 increased 19.6% from the year-ago quarter, topping consensus expectations of $1.17.
For the current fiscal year, ending in December, analysts expect AEE’s EPS to grow 6.6% year over year to $5.36. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on nine “Strong Buy” and eight "Hold” ratings.
The configuration is slightly more bullish than a month ago, with eight analysts suggesting a “Strong Buy” rating.
On May 8, Wells Fargo analyst Shahriar Pourreza reiterated a “Buy” rating on Ameren and set a price target of $120, indicating a 9.3% potential upside from the current levels.
The mean price target of $121.13 suggests a 10.3% premium to its current price levels, while its Street-high price target of $136 implies a 23.9% potential upside.
