Alliant Energy Corporation (LNT) Buy or Sell Stock Guide

Last updated: Dec 09, '17

The analysis below may be helpful to you if you have any of the following questions about LNT stock:

  • Is LNT a buy or a sell?
  • Should I sell or hold LNT stock today?
  • Is LNT a good buy / a good investment?
  • What are LNT analyst opinions, recommendations, ratings?

Here are LNT stock buy reasons/signals:

1. Alliant's earnings growth prospects are robust supported by two key generation projects, which have regulatory support.

2. Iowa's transmission cost rider adjusts rates to eliminate the regulatory lag resulting from new transmission investments between rate cases.

3. The company operates in constructive Iowa and Wisconsin, which supports returns and capital projects.

4. LNT forward dividend yield is 2.81%, higher than the industry (1.90%) and sector (2.04%) forward dividend yields.

5. LNT PEG ratio (P/E adjusted for growth) is 3.27, and it’s low compared to its industry peers’ PEG ratios.

Here are LNT stock sell reasons/signals:

1. Alliant's aggressive investment plan increases regulatory risk.

2. Slow economic recovery in Alliant's major markets, Iowa and Wisconsin, could weigh on customer growth and increase regulatory risk.

3. As with all regulated utilities, rising interest rates will raise financing costs and could make the dividend less attractive for income investors.

4. LNT stock price ($44.81) is close to the 52-week high ($45.15). Perhaps now is a good time to sell?

5. LNT quarterly revenue growth was 1.40%, lower than the industry and sector average revenue growth (8.00% and 7.06%, respectively).

6. LNT profitability is declining. The YoY profit margin change was -0.43pp.

7. LNT Price/Book ratio is 2.57, and it’s high compared to its industry peers’ P/B ratios.

8. LNT Price/Sales ratio is 3.12, and it’s high compared to its industry peers’ P/S ratios.

9. LNT average analyst price target ($42.50) is below its current price ($44.81).

What are your thoughts on LNT?

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