Investing.com - Jefferies lowered its price target on Ameren Corp (NYSE: AEE ) to $115 from $118 on Thursday, while maintaining a Buy rating on the utility company.

The adjustment reflects updated market-to-market peer averages, as the electric/gas peer average 2027 P/E ratio contracted to 15.7x/15.2x from 16.3x/15.7x in Jefferies’ previous analysis.

Despite the reduced target, Jefferies sees 21% upside potential from Ameren’s current $95.20 share price.

Jefferies raised its 2026-2029 estimates based on return on equity improvements at Ameren Missouri, projecting an 8% earnings per share compound annual growth rate, above the 7.7% consensus and at the high end of the company’s 6-8% guidance.

The firm cited accelerating Missouri generation build in 2027-2028 and large customer load increases starting in late 2026 as key growth drivers.

The research firm views Ameren’s $26 billion capital program as financially sound, with manageable equity needs supported by balance sheet strength.

Jefferies noted that equity requirements for 2025-2026 are derisked following May 2025 forward sales agreements, with $600 million per year in equity combined with $300 million annually for tax credit monetization supporting the capital program’s 9.3% rate base compound annual growth rate.

Jefferies believes the market is underappreciating Ameren’s derisked regulatory environment in both Missouri and Illinois, its solid earnings and rate base growth visibility, data center exposure, and strong balance sheet position.

The firm considers Ameren a core large-cap utility holding trading at a reasonable valuation.

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