BMO Capital analyst James Thalacker has reiterated their bullish stance on AEE stock, giving a Buy rating on February 14.
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James Thalacker has given his Buy rating due to a combination of factors including Ameren’s strong execution and promising future growth prospects. The company reported solid FY24 earnings per share (EPS) and reaffirmed its guidance for 2025, indicating a commitment to delivering consistent financial performance. Furthermore, Ameren has extended its 6-8% EPS compound annual growth rate (CAGR) through 2029, supported by an updated $26.3 billion capital plan which now supports a higher rate base growth of approximately 9.2% compared to the previous 8.2%.
Impressively, the increase in capital was achieved with minimal incremental equity, suggesting accretive growth potential. Despite the stock’s significant outperformance and current premium valuation, the robust capital and sales growth updates suggest potential for additional multiple expansion. With Ameren emerging as a high-quality utility story with above-average EPS and dividend per share (DPS) growth, Thalacker sees opportunities for continued positive estimate revisions, reinforcing his Buy rating.
In another report released on February 14, Wells Fargo also maintained a Buy rating on the stock with a $108.00 price target.