Ameren (AEE) will likely report Q3 earnings per share of $2.30, up from $2.17 a year earlier and "modestly" below the $2.33 consensus estimate, BofA Securities said in a note Wednesday.
The investment firm said the company's continued infrastructure investment, weather-normalized sales growth and higher rate base across the transmission and Illinois businesses are expected to more than offset higher O&M and interest expense and equity dilution.
BofA highlighted that Ameren's updated Missouri Integrated Resource Plan is forecasting 2.9 gigawatts of load growth by 2030 and 5 gigawatts by 2035, mainly from data centers and other large clients.
With 2.8 gigawatts of signed Electric Service Agreements starting to ramp in H2 2027 and reach full capacity by year-end 2029, the investment firm said the related generation and grid investments will likely increase the company's five-year capital plan by about $4 billion to $6 billion from $31.8 billion currently.
The increased investment program may support the company's EPS growth above the upper end of management's 6% to 8% guidance range, according to the note.
Ameren is set to report its Q3 financial results on Nov. 6.
BofA Securities reiterated its neutral rating on Ameren and lowered the price target to $107 from $113.
Price: 106.61, Change: +0.38, Percent Change: +0.35
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