Research Alert: CFRA Maintains Hold Opinion On Shares Of Ameren Corporation
02:35 PM EDT, 05/11/2021 (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 raise our target price to $88 from $84, based on our dividend discount model, implying a 21.5x multiple on projected '22 EPS, slightly higher than AEE's three-year average multiple of 20.6x. We raise our '21 EPS estimate to $3.87 from $3.75 and '22's to $4.10 from $4.02 following better-than-expected earnings. AEE prints Q1 adj. EPS of $0.91 vs. $0.59, surpassing consensus by $0.15. Solid Y/Y earnings growth was driven by increased infrastructure investments, new Missouri electric rates, and higher Missouri electric retail sales due to near-normal winter temperatures compared to milder-than-normal temperatures a year ago. The Illinois natural gas distribution segment saw earnings increase due to a change in rate design and higher delivery service rates. Given continued progress in AEE's infrastructure upgrades, which are facilitating improvements in grid reliability (smart technology upgrades have led to a 40% improvement thus far), we expect consistently higher electric rates to follow.