Alliant Energy (LNT) Stock Forecast & Price Target

Alliant Energy's outlook is bolstered by a stable year-over-year financial performance, with minor impacts from weather conditions indicating resilience in its operations. The company's effective tax rate of 10%, combined with strategies to leverage economic development and data center growth, positions it well for future revenue expansion through retained tax benefits and enhanced energy margins. Additionally, management's focus on accelerating coal retirements and renewable project developments is expected to drive an upward revision of EPS growth projections, further enhancing the utility's long-term financial stability and growth potential.

Alliant Energy experienced a year-over-year earnings decline driven by a combination of negative factors, including increased depreciation and amortization expenses, higher financing costs, and adverse weather impacts, contributing to an EPS of $0.57 that fell short of consensus estimates. The company's downside scenario raises concerns about prolonged reliance on coal facilities, potential equity dilution beyond current financing strategies, and a deceleration in rate base growth amidst tightening monetary policy and macroeconomic uncertainties. These challenges, coupled with the risk of cost escalations and project delays, contribute to a negative outlook for Alliant Energy's stock.