Bank of America Provides Color on Ameren
Bank of America provided color on Ameren (NYSE: AEE). In a research report published today, Bank of America commented on the recent decision in Missouri to raise electric rate for Ameren Missouri.
In the report, Bank of America states, “On 7/13, the Missouri Public Service Commission (MoPSC) voted 5-0 to order a $172m electric rate increase for Ameren Missouri, AEE's largest utility subsidiary. The rate increase is based on a 10.2% allowed ROE, 52.2% equity ratio, and $6.7 billion rate base. Ameren MO's revised request was for a $210m increase, based on a 10.7% ROE, 52.2% equity ratio, and $6.8 billion rate base. Although the MoPSC disallowed about $89m of investments related to the Taum Sauk hydro facility, the MoPSC authorized a 10.2% ROE, which is slightly higher than Ameren MO's currently authorized 10.1%.”
At the moment, Bank of America has an Underperform rating and a price target of $29 placed on the company's stock. On Wednesday, AEE closed the day at $28.89.
