Bank of America (BofA) has raised its price target for Alliant Energy, a US-based regulated utility, citing updated earnings estimates that point to improved financial performance. The revision comes as analysts reassess the company's outlook amid steady demand for electricity and gas in its Midwest service areas.
Alliant Energy, which serves approximately 1 million electric and 425,000 natural gas customers in Iowa and Wisconsin, has benefited from a stable regulatory environment and ongoing infrastructure investment. BofA's updated target reflects confidence in the company's ability to deliver consistent earnings growth, supported by rate case outcomes and capital expenditure plans.
While Alliant Energy is not a major component of UK pension funds or the FTSE 100, it may feature in some global equity income portfolios. For UK investors with exposure to North American utilities through exchange-traded funds (ETFs) or multi-asset funds, the revised target signals continued confidence in the sector's defensive characteristics, particularly during periods of economic uncertainty.
Utilities generally offer stable dividends and lower volatility compared to cyclical sectors, making them attractive for income-focused investors. However, the sector faces headwinds from rising interest rates, which increase borrowing costs for capital-intensive projects, and regulatory changes that could affect allowed returns.
Analysts at BofA noted that Alliant Energy's updated estimates incorporate higher projected rate base growth and operational efficiencies. The broader US utility sector has seen mixed performance in 2026, with some stocks under pressure from inflation and supply chain constraints, while others have benefited from data centre demand and electrification trends.