BMO Capital Markets has raised its price target for Alliant Energy Corporation to $83 per share, reflecting a more favourable view of the stock's valuation. The adjustment, announced on Tuesday, does not stem from any revision to the company's earnings projections but rather from a reassessment of its risk-reward profile in the current interest rate environment.
Alliant Energy, headquartered in Madison, Wisconsin, provides regulated electricity and natural gas services to approximately 1 million customers across the Midwest. The stock has traded in a range of roughly $50 to $80 over the past 12 months, with the new target representing an upside of around 8 per cent from Monday's close.
The broader US utility sector has been under pressure this year as persistent inflation and higher-for-longer interest rates weigh on capital-intensive infrastructure stocks. However, some analysts see value emerging after the recent pullback. BMO's move aligns with a cautious but constructive stance on regulated utilities, which offer predictable cash flows and dividend growth.
For UK investors with exposure to US equities through pension funds or global trackers, the upgrade is a modest signal that parts of the American utility market may be attractively priced. Alliant Energy is not directly listed on the London Stock Exchange, but it is a component of several widely held US index funds and exchange-traded products.
Analysts at other houses remain split on the sector. While some warn that elevated borrowing costs will continue to squeeze margins, others point to the defensive qualities of regulated utilities during economic uncertainty. BMO's revised target suggests the balance of risk is shifting slightly in favour of buyers at current levels.