Analyst Julien Dumoulin Smith from Jefferies reiterated a Buy rating on Ameren (AEE – Research Report) and increased the price target to $112.00 from $100.00.
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Julien Dumoulin Smith has given his Buy rating due to a combination of factors that highlight Ameren’s strong growth prospects and financial stability. The company’s earnings outlook has surpassed expectations, driven by a substantial increase in capital expenditures aimed at meeting the growing demand from large customers, particularly in Missouri. This has resulted in an elevated earnings per share growth rate, now approaching the upper end of their target range.
Ameren’s ability to maintain a robust balance sheet while not significantly increasing equity issuance further strengthens its financial position. The legislative landscape in Missouri is also favorable, with bills that support timely recovery of investments, reducing regulatory lag. Additionally, the company’s updated resource plans indicate significant generation investments, enhancing their rate base growth. These elements, combined with strong demand forecasts and strategic financial management, underpin the Buy rating with an increased price target.
According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 3.3% and a 52.89% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Alliant Energy, and Ameren.
In another report released yesterday, BMO Capital also reiterated a Buy rating on the stock with a $105.00 price target.