Jefferies raises Alliant Energy stock price target to $74 on data center growth

Jefferies has raised its price target on Alliant Energy (LNT) to $74 from $69, maintaining a Buy rating, citing an additional $2.9 billion in data center capital expenditure and projecting an 8% EPS CAGR through 2030, positioning LNT as a highly concentrated data center play among regulated utilities. This bullish outlook follows LNT's Q2 2025 earnings, which reported an EPS beat ($0.68 vs. $0.64 consensus) despite a revenue miss, leading to varied price target adjustments from other firms ranging from $68 to $72 and reflecting a divergence in market sentiment regarding its valuation and growth trajectory.

Analysis

Alliant Energy (LNT) is garnering significant analyst attention due to its strategic positioning as a key utility for the expanding data center sector. Jefferies has amplified this narrative by raising its price target to $74.00 and incorporating an additional $2.9 billion in anticipated capital expenditure for data center generation into its model, projecting an 8% EPS CAGR for 2026-2030. This bullish outlook contrasts with the company's mixed Q2 2025 results, where an earnings beat (EPS of $0.68 vs. $0.64 consensus) was overshadowed by a revenue shortfall ($961 million vs. $985.15 million forecast). The market's reaction is fragmented; while firms like BofA Securities, Mizuho, and BMO Capital also raised price targets, their ratings diverge from Buy to Neutral and Market Perform, and Wolfe Research maintains an Underperform rating despite a $72 target. This divergence highlights a central debate: whether LNT's promising growth trajectory in data centers and regulated renewables justifies a valuation that some sources, including InvestingPro, consider overstretched, especially with the stock trading near its 52-week high after a 15.45% annual return.

Key Decisions for Investors

• Investors should weigh the long-term growth thesis, driven by an expected 6-8%+ EPS CAGR from data center demand, against the near-term risk signaled by the recent quarterly revenue miss and varied analyst ratings.
• Given the stock is trading near its 52-week high and some analyses suggest it is overvalued, a cautious approach may be warranted, focusing on potential entry points that offer a better risk-reward profile.
• Key upcoming catalysts to monitor include the company's third-quarter 2025 earnings report for a potential guidance update and the QTS-Madison confirmation in the second half of 2025 for more clarity on future data center projects.