Ameren Corporation (AEE), headquartered in Saint Louis, Missouri, is a public utility holding company that generates and delivers electricity and distributes natural gas. Valued at $21.7 billion by market cap, the company generates a net capacity of nearly 10,200 megawatts of electricity and owns more than 7,500 circuit miles of transmission lines.
Shares of this public utility holding company have underperformed the broader market considerably over the past year. AEE has gained 3.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.9%. In 2024, AEE’s stock rose 12.4%, compared to the SPX’s 16.2% rise on a YTD basis.
Narrowing the focus, AEE has also lagged behind the iShares U.S. Utilities ETF (IDU). The exchange-traded fund has gained about 20.7% over the past year. Moreover, the ETF’s 18.4% gains on a YTD basis outshines the stock’s returns over the same time frame.
On Aug. 1, AEE shares closed up more than 2% after reporting its Q2 results. Its EPS of $0.97 topped Wall Street expectations of $0.93. However, the company’s revenue was $1.7 billion, falling short of Wall Street forecasts of $1.9 billion. AEE reaffirmed its 2024 EPS and expects it to be between $4.52 and $4.72.
For the current fiscal year, ending in December, analysts expect AEE’s EPS to grow 5.3% to $4.61 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 13 analysts covering AEE stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, seven “Holds,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Aug. 2, Wells Fargo analyst Neil Kalton maintained a “Buy” rating on AEE with a price target of $91, implying a potential upside of 11.9% from current levels.
The mean price target of $81.55 represents a marginal premium to AEE’s current price levels. The Street-high price target of $88 suggests an upside potential of 8.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
