On Thursday, BMO (TSX:BMO) Capital Markets updated its financial outlook on Ameren Corp . (NYSE: NYSE:AEE), increasing the price target to $100 from $94, while maintaining an Outperform rating. The adjustment comes ahead of Ameren's year-end earnings call scheduled for February 14, 2025. According to InvestingPro data, analyst targets for Ameren currently range from $80 to $106, with the utility giant commanding a market capitalization of $24.77 billion.
Ameren's fourth quarter and full-year 2024 earnings are anticipated by BMO Capital, with estimates of $0.76 and $4.62 respectively. These figures are in line with the full-year consensus but slightly below the consensus estimate of $0.80 for the fourth quarter. BMO Capital suggests that the quarterly consensus could be outdated, ranging from $0.76 to $0.80. InvestingPro analysis reveals that three analysts have recently revised their earnings estimates downward, though the company remains profitable with trailing twelve-month earnings per share of $4.26.
The firm expects that investors will pay close attention to Ameren's capital plan update during the earnings call. BMO Capital predicts a substantial enhancement to the existing $21.9 billion plan for 2024-2028, which should support a ratebase growth of approximately 8.2%. This update is anticipated to reinforce Ameren's position at the higher end of its projected 6-8% earnings per share (EPS) compound annual growth rate (CAGR), especially considering the 2025 midpoint estimate of $4.95.
Ameren's stock has been one of the top performers since mid-2024, appreciating nearly 17% and trading at a roughly 7% premium based on 2027 EPS projections. The stock has delivered an impressive 37.06% return over the past year, with a P/E ratio of 21.79. While this significant outperformance could potentially alter the risk-reward balance in the short term, BMO Capital believes the expected growth update, consistent regulatory achievements, and alignment with favorable themes will contribute to Ameren's outperformance in 2025. According to InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting investors should carefully consider their entry points. For detailed valuation metrics and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, covering this and 1,400+ other US equities.
In other recent news, Ameren Corp. has experienced significant developments. Evercore ISI recently upgraded Ameren's stock from In Line to Outperform, raising the price target to $104. This upgrade follows the upward revision of earnings estimates by three analysts. Evercore's Durgesh Chopra anticipates Ameren achieving the higher end of its targeted 6-8% earnings per share (EPS) growth rate. Mizuho (NYSE:MFG) Securities also raised its price target for Ameren to $95, citing potential benefits from new legislation in Missouri.
Analysts from Jefferies increased Ameren's stock price target to $100, expecting the company's strong performance to continue into 2025. BMO Capital Markets adjusted its price target for Ameren twice, first downgrading it to $93, then upgrading it to $98, reflecting developments in a Missouri rate case and Ameren's quarterly earnings report. The company's earnings per share (EPS) for the third quarter of 2024 was reported at $1.87, slightly below the anticipated range of $1.90 to $1.93.
Ameren refined its earnings guidance for 2024, projecting a range between $4.55 and $4.69. It also provided its 2025 earnings outlook earlier than usual, forecasting a range of $4.85 to $5.05, suggesting a year-over-year growth of 7.1%. The company plans to issue $300 million of common equity in 2024 to support its capital investments. These are the recent developments in Ameren's financial landscape.
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