Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 27 May, 25 | LNT | Buy | USD 62.18 | USD 66.0 | USD 70.0 | 58 days | Closed |
6.14%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services in the United States. It operates in three segments: Utility Electric Operations, Utility Gas Operations, and Utility Other. The company, through its subsidiary, Interstate Power and Light Company (IPL), primarily generates and distributes electricity, and distributes and transports natural gas to retail customers in Iowa; sells electricity to wholesale customers in Minnesota, Illinois, and Iowa; and generates and distributes steam in Cedar Rapids, Iowa. Alliant Energy Corporation, through its other subsidiary, Wisconsin Power and Light Company (WPL), generates and distributes electricity, and distributes and transports natural gas to retail customers in Wisconsin; and sells electricity to wholesale customers in Wisconsin. It serves retail customers in the farming, agriculture, industrial manufacturing, chemical, packaging, and food industries, as well as wholesale customers comprising municipalities and rural electric cooperatives. In addition, the company owns and operates a short-line rail freight service in Iowa; a Mississippi River barge, rail, and truck freight terminal in Illinois; freight brokerage services; wind turbine blade recycling services; and a rail-served warehouse in Iowa. Further, it holds interests in a natural gas-fired electric generating unit near Sheboygan Falls, Wisconsin; and a wind farm located in Oklahoma. The company was formerly known as Interstate Energy Corp. and changed its name to Alliant Energy Corporation in May 1999. Alliant Energy Corporation was incorporated in 1981 and is headquartered in Madison, Wisconsin.
Capital Investment: Projected capital expenditures total $11.5 billion from 2025 to 2028, reflecting aggressive infrastructure and clean energy expansion
EPS Growth: GAAP EPS increased by $0.21, from $0.62 in Q1 2024 to $0.83 in Q1 2025—a 34% increase
Increased Costs: Higher depreciation and financing expenses negatively impacted EPS by $0.06 and $0.04, respectively, year-over-year
Non-utility Segment Decline: EPS contribution from Non-utility and Parent operations dropped by $0.04, from $(0.04) in Q1 2024 to $(0.08) in Q1 2025
Alliant Energy's earnings are exposed to regulatory, weather, and interest rate risks, with substantial reliance on achieving timely capital project execution and regulatory approvals to maintain authorized returns
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 62.18 | 58.0 | 66.0 | 70.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong First Quarter Performance: Alliant Energy Corporation reported first quarter 2025 consolidated GAAP earnings per share (EPS) of $0.83, marking a significant increase from $0.62 in the same period of 2024. This performance exceeded internal expectations and accounted for more than 25% of the midpoint of the company’s reaffirmed full-year earnings guidance of $3.15 to $3.25 per share. The strong start came despite the adverse impact of warmer-than-normal temperatures on retail sales.
Segment Contributions to Earnings: The Utilities and Corporate Services segment generated $0.87 EPS in Q1 2025, up from $0.62 in Q1 2024. This $0.25 per share increase was primarily driven by higher revenue requirements resulting from capital investments, favorable temperature variances relative to 2024, and the timing of income tax expenses. These gains were partially offset by increased depreciation and financing costs. The American Transmission Company (ATC) Holdings remained consistent, contributing $0.04 in both periods, while the Non-utility and Parent segment saw a decline of $0.04 per share year-over-year, contributing $(0.08) in 2025.
Drivers of Earnings Growth: Alliant Energy's $0.21 year-over-year increase in consolidated EPS for Q1 2025 was largely attributable to $0.21 from increased revenue requirements due to capital investments. These included rate base growth tied to renewable energy investments. Higher depreciation and financing expenses reduced EPS by $0.06 and $0.04 respectively, while temperature impacts and income tax timing provided positive contributions of $0.05 and $0.04 per share. Minor adjustments under "Other" added $0.01 to earnings.
Utility Rate Orders and Revenue Recognition: Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL) both received regulatory approvals for rate increases in late 2023 and 2024, contributing to the revenue growth. Specifically, IPL recognized a $0.15 EPS increase tied to a $185 million electric and $10 million gas rate base increase, while WPL contributed $0.06 EPS growth from a $60 million retail electric rate increase. Both were primarily linked to investments in solar and energy storage infrastructure.
Capital Expenditures Outlook: Alliant Energy has updated its projected capital expenditures for the 2025–2028 period, now estimating an aggregate investment of $11.5 billion. In 2025 alone, the company plans to spend $2.51 billion, with significant allocations toward renewable energy ($995 million), gas projects ($460 million), and electric distribution systems ($595 million). By 2028, capital spending is expected to peak at $3.205 billion, emphasizing the company's strategic focus on supporting 2.1 gigawatts of contracted data center demand.
Reaffirmation of 2025 Earnings Guidance: Despite fluctuating weather and macroeconomic conditions, Alliant Energy reaffirmed its 2025 EPS guidance of $3.15 to $3.25. The forecast assumes normal weather conditions, successful execution of capital and cost management plans, stable economic conditions, and the ability of IPL and WPL to earn their authorized rates of return. A consolidated effective tax rate of approximately (28%) is also factored into the guidance.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Alliant Energy Corporation (NASDAQ: LNT) at the current market price of USD 62.18, as on May 27, 2025 at 10:25 AM PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Regulated Electric
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| LNT Alliant Energy Corp |
0.80 1.24% | 65.30 | 18.13 | 15.65 | 3.06 | 1.82 | 5.40 | 12.25 |
| NEE Nextera Energy Inc |
-0.19 0.26% | 71.76 | 15.77 | 17.61 | 4.52 | 2.61 | 7.10 | 12.28 |
| SO Southern Company |
0.03 0.03% | 95.23 | 25.35 | 17.76 | 2.89 | 2.48 | 5.27 | 13.35 |
| DUK Duke Energy Corporation |
1.46 1.22% | 120.94 | 20.54 | 16.34 | 2.60 | 1.59 | 5.34 | 11.98 |
| AEP American Electric Power Co Inc |
4.05 3.71% | 113.27 | 19.17 | 16.18 | 2.58 | 1.91 | 4.83 | 12.39 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 27,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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