Alliant Energy: Hold Rating Amid Capital Plan Expansion and Regulatory Considerations

James Thalacker, an analyst from BMO Capital, maintained the Hold rating on Alliant Energy (LNT – Research Report). The associated price target was lowered to $64.00.

James Thalacker has given his Hold rating due to a combination of factors that influence Alliant Energy’s current and future financial outlook. Although the company is expected to report strong first-quarter earnings, surpassing consensus estimates, the focus remains on the anticipated capital plan update. This update is expected to include a significant increase in capital expenditure due to finalized data center contracts, yet the long-term earnings growth projection remains unchanged at 5-7%.
Furthermore, while the capital plan is set to grow, some investments may extend beyond 2028, potentially requiring short-term power purchase agreements. Additionally, regulatory factors such as the potential impacts of an IRA repeal and financing strategies like tax equity are considered. These elements contribute to a balanced view, aligning Alliant Energy’s growth prospects with those of its peers, justifying the Hold rating.