Ameren shares have shown solid growth over the past three months

Ticker: AEE

Author: Stock Analyst  Date: 2021/05/14

On May 11, Ameren, a Missouri-based electricity holding company, released its financial results for the first quarter of this year. The company's refined EPS for Q1 was $0.91 (+ 54.2% YoY), well ahead of the $0.75 consensus.

Profits were positively impacted by new tariffs for Ameren Missouri's electricity services, effective April 1, 2020, as well as higher retail electricity sales driven by lower winter temperatures in the first quarter of 2021 compared to the same period in 2020. Profits for Ameren Illinois Natural Gas Distribution increased due to a change in the tariff scheme and higher rates for services provided, which took effect at the end of January 2021.

Profits were also positively impacted by the higher authorized return on equity of Ameren Illinois Electric Distribution due to the higher estimate of the average yield of 30-year US Treasuries in 2021 compared to 2020.

Over the past 3 months, the company's shares have shown solid growth (> 15%) in the wake of the recovery in the sector as a whole, as well as good production and financial indicators. This gives grounds for revising the current target of Finam Group ($ 74.29, recommendation "hold").