How Surging Data Center Demand and Analyst Optimism at Alliant Energy (LNT) Has Changed Its Investment Story

• In recent days, Alliant Energy has attracted attention as analysts highlighted strong growth prospects tied to rising power demand from data centers and major customer projects, along with recognition of its renewable energy transition and favorable regulatory conditions.
• An interesting development is the rapid increase in analyst optimism, accompanied by institutional investor activity and bipartisan Congressional interest, reflecting broader confidence in Alliant Energy's potential to benefit from changing grid demands.
• We'll explore how increasing analyst confidence in Alliant Energy's data center-driven growth is influencing its investment narrative and long-term outlook.

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Alliant Energy Investment Narrative Recap

To be a shareholder in Alliant Energy, you need confidence in the company’s ability to convert growing data center and large-scale customer demand into sustained earnings growth, while navigating significant capital expenditure needs, regulatory approval, and competitive pressures. Recent analyst price target increases highlight optimism around Alliant’s data center pipeline as a short-term catalyst, but the most immediate risk remains project execution or regulatory setbacks, neither of which appear materially changed by the latest developments.

Among the recent company announcements, Jefferies' increase in price target to US$77 signals that analyst expectations are rising based on Alliant’s expanding opportunities in the data center sector, coupled with anticipation of new power generation tied to customer growth. These factors align directly with Alliant’s ongoing narrative of growth acceleration from increased load demand.

On the other hand, if new customer projects are delayed or capital needs exceed forecasts, investors should be aware that ...

Read the full narrative on Alliant Energy (it's free!)

Alliant Energy's narrative projects $4.9 billion revenue and $1.1 billion earnings by 2028. This requires 5.4% yearly revenue growth and a $268 million earnings increase from $832 million today.

Uncover how Alliant Energy's forecasts yield a $69.70 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offer 2 distinct fair value estimates for Alliant, between US$60.77 and US$69.70 per share. While everyone is factoring in major catalysts around customer growth, the wide spread shows just how much opinions can differ, see what other market participants are anticipating for the company’s outlook.

Explore 2 other fair value estimates on Alliant Energy - why the stock might be worth as much as $69.70!

Build Your Own Alliant Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alliant Energy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Alliant Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alliant Energy's overall financial health at a glance.

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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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