Alliant Energy Corporation (LNT) Buy or Sell Stock Guide

Last updated: May 07, '18

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 quarterly revenue growth was 7.40%, higher than the industry and sector average revenue growth (5.07% and 5.98%, respectively).

5. LNT forward dividend yield is 3.12%, higher than the industry (1.90%) and sector (1.79%) forward dividend yields.

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

5. LNT forward P/E ratio is 19.03, and it’s high compared to its industry peers’ P/E ratios.

6. LNT Price/Sales ratio is 2.93, and it’s high compared to its industry peers’ P/S ratios.

7. LNT average analyst price target ($40.71) is below its current price ($43.00).

8. LNT short interest (days to cover the shorts) ratio is 5.04. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on LNT?

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