Wells Fargo Starts Alliant Energy (LNT) at Overweight

Wells Fargo analyst Shahriar Pourreza initiates coverage on Alliant Energy (NASDAQ: LNT) with a Overweight rating and a price target of $71.00.

The analyst comments "We are initiating coverage of LNT with an OW rating and $71 PT on upside guidance prospects. LNT currently trades at a ~7% premium, which we believe is justified given the number of tailwinds—and we see an opportunity for shares to trade closer to a WEC premium (~10%) as data center load continues to materialize. WI and IA have emerged as hot spots for data center/hyperscaler developments which supports our constructive thesis on the story. We arrive at our $71 PT by applying our 17.0x target group multiple to 2028 earnings for regulated utilities, and add a 2.0x premium to reflect 100 bps of higher EPS growth relative to the group at 7.4%, (please see our valuation section, where our math shows 100 bps of growth beyond/below the group average of ~7.4% represents a 2x premium/ discount). Our price target of $71 coupled with its 3% dividend yield over the next 12 months represents ~10% upside from current levels."

For an analyst ratings summary and ratings history on Alliant Energy click here. For more ratings news on Alliant Energy click here.

Shares of Alliant Energy closed at $67.34 yesterday.

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