Morgan Stanley Adjusts Price Target on Ameren to $114 From $118, Maintains Equalweight Rating

Missouri state Rep. Brad Christ is urging regulators to reject Ameren Missouri's proposed $343M electric rate hike, citing concerns that residential customers may subsidize data centers. The increase could add $156 annually to average bills. Ameren seeks the hike to meet growing demand, including from new large-load customers. Christ wants costs for accelerated power generation assigned directly to these users. The Public Service Commission is reviewing the request.

Ameren (AEE) priced a $900 million notes offering due 2057, signaling long-term financing. Its stock has seen a 5.3% YTD gain and 10.1% one-year return. Analysts debate its valuation, with one narrative suggesting it's 11.4% undervalued at $119.87, while a DCF model estimates $95.28, indicating a premium. Growth depends on grid modernization and regulatory approvals.

Ameren Corporation (NYSE: AEE) priced a $900 million offering of junior subordinated notes due 2057. The notes bear interest at 6.450% until 2032, then reset based on the Five-Year Treasury Rate plus 1.868%. Proceeds will be used for general corporate purposes, including debt repayment. The offering is expected to close on September 18, 2026.

Ameren Illinois, a subsidiary of Ameren Corporation, closed a $400 million bond offering with a 5.50% coupon due in 2036. The company received $397.4 million in proceeds, which will support capital expenditures and corporate purposes. The bonds are secured by a first mortgage lien on the company's properties.

Ameren (AEE) reported Q2 2026 EPS of $1.13, beating the Zacks Consensus Estimate of $1.08 by 4.6%. Revenues were $2.09 billion, down 5.8% year over year and below the $2.39 billion consensus. Operating income rose 11.7% to $459 million. Ameren reaffirmed 2026 EPS guidance of $5.25-$5.45.

Ameren Corporation reported an increase in its second-quarter 2026 earnings, supported by continued investments in grid infrastructure, system reliability and innovative energy technologies, while reaffirming its full-year earnings guidance. The company posted net income attributable to common shareholders of $314 million, or $1.13 per diluted share, for the quarter ended June 30, 2026, compared with $275 million, or $1.01 per diluted share, in the corresponding period last year.