Alliant Energy (LNT): Assessing Valuation After Higher Dividend Target and Fresh 2025-2026 Guidance

Alliant Energy (LNT) gave investors plenty to mull over with its latest earnings, a higher 2026 dividend target, and fresh guidance for both this year and next. This offers a clearer view of future returns.

See our latest analysis for Alliant Energy.

After these updates, Alliant Energy's share price momentum has gathered pace, with a 15.2% year-to-date return and a strong 17% total shareholder return over the past year. Investors are taking note of improved clarity in earnings guidance and a higher upcoming dividend, which adds confidence to the long-term outlook.

If firming guidance and fresh dividend targets have you looking beyond utilities, now is a good time to broaden your opportunity set and explore fast growing stocks with high insider ownership

The run-up in Alliant Energy’s shares may reflect growing optimism. With the company’s improved guidance and higher dividends, is there still an undervalued opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 5.7% Undervalued

Alliant Energy’s latest consensus narrative sets its fair value at $71.50, above the recent close of $67.42. This implies room for near-term upside if the narrative’s optimistic projections play out. The fair value is built from a robust mix of top-line growth, margin expansion, and electrification tailwinds, reflecting an upbeat view on future fundamentals.

The accelerating construction and onboarding of large-scale data centers in Alliant's Midwest service areas highlight a strong, sustained uptick in electricity demand, directly linked to population and economic growth in the region, which is expected to drive significant increases in revenue and top-line growth over the next several years.

Read the complete narrative.

What secrets lie behind this bullish outlook? The answer is not just about new customers. There are bold assumptions about margin gains and how much future profit growth is already priced in. Wondering which financial levers make this narrative tick? Dive in for the full details behind these high expectations.

Result: Fair Value of $71.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in bringing new data centers online or unfavorable regulatory outcomes could quickly undermine these optimistic targets and investor confidence.

Find out about the key risks to this Alliant Energy narrative.

Another View: What Do Earnings Multiples Say?

Looking at the price-to-earnings metric, Alliant Energy trades just above both its industry average and its peer group, with a ratio of 21.2x compared to 21x and 18.4x respectively. The market’s expectations for future growth are already reflected, and the fair ratio suggests little room for upside. Could this mean investors are running out of undervalued ground to cover?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Alliant Energy Narrative

If you see the story differently or want to chart your own course, it takes less than three minutes to build your own narrative and data view. Do it your way

A great starting point for your Alliant Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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