Analyst Ross Fowler of Bank of America Securities maintained a Buy rating on Alliant Energy (LNT – Research Report), retaining the price target of $66.00.
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Ross Fowler’s rating is based on Alliant Energy’s strategic focus on growth, resource flexibility, and supportive regulatory environments. The company aims to grow its rate base in alignment with capital expenditures, utilizing a flexible resource planning model. This approach is supported by constructive jurisdictions that emphasize affordability and growth, allowing Alliant Energy to guide towards the upper end of its 5-7% growth guidance.
Additionally, the company is addressing potential risks associated with the Inflation Reduction Act, particularly concerning tax credits. Management has expressed confidence in their ability to adapt if necessary, with potential plans to pivot towards gas technologies if required. Furthermore, Alliant Energy is well-positioned to handle increasing load growth, supported by its long capacity and individual customer rate system. The company benefits from constructive regulatory environments in Iowa and Wisconsin, which support large load growth and provide a positive rate structure, contributing to the Buy rating.
Fowler covers the Utilities sector, focusing on stocks such as Northwestern, Sempra Energy, and Alliant Energy. According to TipRanks, Fowler has an average return of 3.3% and a 55.34% success rate on recommended stocks.