Neil Kalton, an analyst from Wells Fargo, maintained the Buy rating on Ameren (AEE – Research Report). The associated price target is $84.00.
Neil Kalton’s rating is based on a comprehensive evaluation of Ameren’s financial outlook and strategic capital allocation. The company’s earnings per share (EPS) guidance for 2024 shows a promising increase of approximately 6% from the midpoint of 2023, indicating a positive growth trajectory. This growth is supported by effective cost management, particularly at Ameren Missouri, which is expected to counterbalance the less favorable outcome in the Illinois Multi-Year Rate Plan (IL MYRP). Furthermore, Ameren has maintained its forecast for a 6-8% compound annual growth rate (CAGR) in EPS through 2028, reflecting consistency with the firm’s historical performance and forward-looking business strategy.
Additionally, Ameren’s revised capital expenditure (capex) guidance for 2024-2028 is set at $21.9 billion, an 11% increase compared to the previous period’s guidance, with a projected 8.2% CAGR. The strategic pivot in capital deployment, increasing investments in Missouri and Federal Energy Regulatory Commission (FERC) transmission while reducing exposure to Illinois electric distribution, illustrates management’s prudent approach to fostering growth areas. Rate base growth projections for both Ameren Missouri and Ameren Transmission are significantly higher than those for Illinois utilities, highlighting the company’s focus on regions with more robust growth potential. These factors collectively justify Neil Kalton’s Buy rating for Ameren’s stock.
According to TipRanks, Kalton is a 4-star analyst with an average return of 5.3% and a 57.43% success rate. Kalton covers the Utilities sector, focusing on stocks such as DTE Energy, Eversource Energy, and PPL.
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Ameren (AEE) Company Description:
Ameren Corp. operates as a public utility holding company that provides electric and natural gas services. It operates through the following business segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The Ameren Missouri segment includes all of the operations of Ameren Missouri. The Ameren Illinois Electric Distribution segment consists of the electric distribution business of Ameren Illinois. The Ameren Illinois Natural Gas segment consists of the natural gas business of Ameren Illinois. The Ameren Transmission segment primarily consists of the aggregated electric transmission businesses of Ameren Illinois and ATXI. The company was founded in 1902 and is headquartered in St. Louis, MO.
Read More on AEE:
- Ameren Unveils Comprehensive Financial Results for 2023
- Ameren Announces 2023 Results and Issues Guidance for 2024 Earnings and Long-Term Growth
- Ameren Corporation (AEE) Q4 Earnings Cheat Sheet
- Ameren Corporation increases quarterly cash dividend by 6.3 percent, marking eleven consecutive years of growth
- Ameren raises quarterly dividend 6.3% to 67c per share
