Alliant Energy stock price target raised to $70 by BofA on strong Q2

Alliant Energy (LNT) reported Q2 adjusted operating EPS of $0.68, surpassing consensus estimates, despite revenue of $961 million missing forecasts. The utility's stock is up 13.3% year-to-date and trades near its 52-week high, benefiting from higher revenue requirements and retail sales, though partially offset by increased costs. Following the results, BofA Securities raised its price target to $70 with a Buy rating, while other firms like Mizuho, BMO, and Wolfe Research also adjusted targets with mixed ratings, citing factors ranging from data center growth to regulated renewables. LNT reaffirmed its full-year 2025 EPS guidance and long-term earnings growth target.

Analysis

Alliant Energy (LNT) delivered a mixed second-quarter financial report, characterized by a notable earnings beat but a simultaneous revenue shortfall. The company posted adjusted operating earnings per share of $0.68, surpassing the $0.64 consensus estimate and the prior year's $0.54, driven by higher revenue requirements from an expanding rate base and favorable temperature-related retail sales. However, total revenue of $961 million fell short of the $985.15 million forecast, with positive factors being partially offset by increased depreciation and financing costs. Despite this revenue miss, management reaffirmed its full-year 2025 EPS guidance of $3.15-$3.25 and a long-term 5-7% EPS compound annual growth rate, signaling confidence in its outlook. The market has responded positively, with the stock up 13.3% year-to-date and trading near its 52-week high. Analyst sentiment is nuanced; while several firms, including BofA, Mizuho, BMO Capital, and Wolfe Research, raised their price targets, their underlying ratings diverge significantly, ranging from Buy (BofA) to Underperform (Wolfe), reflecting differing views on the company's valuation and its strategic positioning in growth areas like data centers and regulated renewables.

Key Decisions for Investors

• Investors should weigh the strong earnings per share performance and reaffirmed long-term 5-7% growth guidance against the Q2 revenue miss and the stock's position near its 52-week high.
• The 3.11% dividend yield offers an attractive income component, but the divergent analyst ratings, from Buy to Underperform, suggest carefully evaluating the specific bull and bear cases before committing capital.
• Monitor the company's progress in capitalizing on catalysts like data center demand and regulated renewables, as these are cited as key drivers and will be critical for justifying its current valuation and achieving its growth targets.