Sebastian Frank/iStock via Getty Images
Alliant Energy (NASDAQ:LNT) +1.6% in Wednesday's trading as Wells Fargo upgraded the stock to Overweight from Equal Weight with a $61 price target, up from $58, after languishing during the past nine months because of a "regulatory hiccup" in Iowa.
A request from Alliant's (LNT) Interstate Power & Light to develop 400 MW of solar and 75 MW of battery storage under advance rate-making treatment has met resistance from Iowa regulators, but Wells Fargo's Neil Kalton said IPL "ultimately could elect to proceed under traditional rate-making measures, especially considering growing generation needs."
Kalton said Alliant (LNT) shares trade at an 8% discount vs. a basket of other perceived high quality Midwest-based utilities, but resolution of the Iowa hangup and a constructive rate case outcome in Wisconsin could prompt a bridging of the valuation gap.
Alliant Energy (LNT) operates in favorable regulatory jurisdictions and has a strong track record of growth, Gen Alpha writes in an analysis published on Seeking Alpha.