Ameren (AEE – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Neil Kalton from Wells Fargo maintained a Buy rating on the stock and has a $112.00 price target.
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Neil Kalton has given his Buy rating due to a combination of factors that highlight Ameren’s positive momentum and growth potential. The company has seen significant interest in data center developments, with agreements for approximately 2.3 GW in Missouri, marking an increase of 500 MW since the last update. This growth is supported by Missouri’s favorable stance towards data centers and economic development, which bodes well for Ameren’s future prospects.
Additionally, recent legislative changes in Missouri, such as the passage of SB 4, provide further support for Ameren’s operations. These changes include modifications to PISA, which now covers natural gas generation and extends its sunset to the end of 2035, along with positive resource planning items. The company’s capital expenditure forecast and improving return on equity assumptions also contribute to a strong growth outlook, with a projected 7.5% compound annual growth rate from the 2025 guidance midpoint. These factors collectively underpin Kalton’s confidence in Ameren’s stock, justifying the Buy rating.
Kalton covers the Utilities sector, focusing on stocks such as FirstEnergy, NRG Energy, and Alliant Energy. According to TipRanks, Kalton has an average return of 9.6% and a 63.46% success rate on recommended stocks.
In another report released today, KeyBanc also upgraded the stock to a Buy with a $103.00 price target.