Mild Weather Pinched Ameren Corporation's 4Q15 Earnings
Outlook
Management of Ameren Corporation (AEE) has provided earnings guidance of $2.40 to $2.60 per share in 2016. This includes an estimated $0.13 per share decline related to substantial lower electric sales volumes to Noranda Aluminium—Ameren Missouri’s largest customer.
Ameren expects its earnings to grow by 5% to 8% compounded annually through 2020. These earnings are expected to be triggered by nearly 6.5% rate base growth in the next five years. Considering the Ameren’s earnings in 2015, it posted earnings increase of 6% compared to 2014.
Price targets
The chart below shows the price targets given by Wall Street Analysts for Ameren Corporation in the next one year.
According to Wall Street analysts, Ameren Corporation (AEE) has a median price target of $46. This implies a possible upside of nearly 1% in one year against its current market price of $45.60.
Of the 13 analysts tracking AEE, 8 recommend it as a “hold” while 5 recommend it as a “buy”. None of the analysts have a sell recommendation on AEE as of February 22, 2016.
Compared to other utility (IDU) peers, Pinnacle West Capital Corporation (PNW) has a price target of $67 implying an estimated downside of 2%. It is currently trading at $68.25. Edison International (EIX), has an estimated upside of ~4% with a price target of $66. EIX is currently trading at $63.70. Carolina’s SCANA Corporation (SCG) has a price target of $63. It indicates a possible downside of 4%. It is currently trading at $65.38.
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