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What Ameren (AEE)'s Higher Long-Term EPS Growth Target Means For Shareholders

Simply Wall St · 01/06 18:27
  • Ameren recently updated its long-term earnings-per-share guidance, targeting a compound annual growth rate of 6% to 8% from 2025 through 2029, supported by confidence in its regulated utility operations.
  • Analysts highlighted that Ameren’s prospects are being shaped by improved regulation in Missouri, manageable challenges in Illinois, and emerging demand from data centers that could influence future load growth.
  • Now we’ll explore how Ameren’s higher long-term EPS growth guidance could reshape the company’s existing investment narrative and risk balance.

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Ameren Investment Narrative Recap

To own Ameren, you have to believe in its regulated utility model, large capital plan and growing large-load demand, especially from data centers. The higher 6% to 8% long term EPS growth guidance reinforces that story rather than changing it, but it also sharpens the near term focus on whether projected data center load and regulatory support actually materialize as planned, since misses here could pressure returns on Ameren’s sizable investment pipeline.

Against this backdrop, Ameren’s updated 2025 and new 2026 EPS guidance, with reaffirmed and then raised ranges, ties directly into the higher long term EPS growth outlook. While this guidance reflects management’s confidence in its rate base growth and regulatory framework, it also sits alongside significant planned capex and reliance on continued supportive regulation and policy, especially in Missouri and for federal energy tax credits.

But investors should also be aware that Ameren’s ambitious data center driven load expectations could still run into…

Read the full narrative on Ameren (it's free!)

Ameren's narrative projects $9.7 billion revenue and $1.7 billion earnings by 2028.

Uncover how Ameren's forecasts yield a $111.62 fair value, a 12% upside to its current price.

Exploring Other Perspectives

AEE 1-Year Stock Price Chart
AEE 1-Year Stock Price Chart

Two Simply Wall St Community fair value estimates for Ameren span from US$88.10 to US$111.62, underscoring how far apart individual views can be. Before you decide where you stand, remember that Ameren’s higher long term EPS guidance still leans heavily on timely data center demand and regulatory approval, so it is worth comparing several independent viewpoints on how dependable those drivers might be.

Explore 2 other fair value estimates on Ameren - why the stock might be worth as much as 12% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.