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Research Alert: CFRA Reduces Rating On Shares Of Alliant Energy To Hold From Buy

05/07/2021 09:17

01:15 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our target at $61 based on our dividend discount model, implying a 21.9x multiple on projected '22 EPS, slightly above the 21.2x peer group average. We raise our '21 EPS estimate to $2.63 from $2.58 and '22's to $2.79 from $2.76. LNT prints Q1 adj. EPS of $0.68 vs. $0.72, surpassing consensus by $0.01. Lower Y/Y EPS was driven by the negative timing of income tax, a higher depreciation expense, and a lower allowance for funds used during construction; this was partially offset by the increasing rate base and higher electric and gas sales volumes. We see continued progress made on the clean energy front as LNT received approval on the first 675 megawatts of its 1,100 megawatt planned solar expansion program in Wisconsin -- completion of this expansion will make LNT the state's largest owner and operator of solar energy. We are moderating our rating to hold to reflect some pricing in of expectations as LNT shares rose 19% since our prior note (vs. 7% for the utility sector benchmark).