On Wednesday, St. Louis-based utility company Ameren Corp . (NYSE: AEE), with a market capitalization of $23.86 billion, saw its stock price target increased by analysts at Jefferies, from $98.00 to a new target of $100.00.
The firm has maintained a "Buy" rating on the stock, indicating a positive outlook for the company's financial performance. According to InvestingPro data, three analysts have recently revised their earnings upwards for the upcoming period, while the stock currently trades at a P/E ratio of 21.08.
The adjustment in the price target comes as Jefferies anticipates Ameren to end 2024 on a strong note with continued momentum into 2025. Analysts at the firm do not foresee an increase in the company's earnings per share (EPS) compound annual growth rate (CAGR), but they expect the EPS CAGR to trend towards the higher end of the previously estimated 6-8% range, settling at around 7%, up from the earlier forecast of 6.6%.
The company has demonstrated strong dividend performance, having raised its dividend for 11 consecutive years with a current yield of 3%.
The revised estimate is supported by several factors, including updated infrastructure spending in Missouri, outcomes from the Missouri Electric rate case expected in the middle of the year, the final Multi-Year Rate Plan (MYRP) order in Illinois, a promising transmission outlook, and anticipated load growth. InvestingPro analysis indicates the stock generally trades with low price volatility, making it an interesting consideration for stability-focused investors.
Jefferies has indicated plans to release a comprehensive update in February, which will include revised projections for load, EPS and rate base CAGR, as well as details on Ameren's capital and financing strategies. This forthcoming report is expected to provide investors with a clearer picture of the utility company's financial trajectory and operational plans.
Ameren Corp., a company that delivers electricity and natural gas to customers in Missouri and Illinois, has been under the analysts' radar, with the latest updates reflecting confidence in its investment strategy and regulatory developments. The company's stock performance will continue to be watched closely by investors following these projections.
In other recent news, Ameren Corporation (NYSE:AEE) has seen significant developments. The company's earnings report disclosed earnings per share (EPS) of $1.87, slightly below the anticipated range of $1.90 to $1.93. Ameren also refined its earnings guidance for 2024, projecting a range between $4.55 and $4.69, and provided its 2025 earnings outlook earlier than usual, forecasting a range of $4.85 to $5.05. This guidance suggests a year-over-year growth of 7.1%.
BMO Capital Markets has made adjustments to Ameren's share target, first downgrading it to $93, then upgrading it to $98. These changes reflect recent developments in a Missouri rate case and Ameren's quarterly earnings report. The company's case will continue to develop over the coming months, with possible adjustments based on further submissions and true-ups.
Ameren's commitment to achieving an EPS growth rate of 6-8% and a rate base growth of approximately 8.2% remains steady. The company's 10-year investment pipeline exceeds $55 billion, aiming to bolster economic growth and job creation.
Moreover, Ameren plans to issue $300 million of common equity in 2024 to support its capital investments. These are recent developments in Ameren's financial landscape.
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