UPDATE: Morgan Stanley Lowers PT on Ameren Following Merchant Power Sale Announcement

In a report published Friday, Morgan Stanley analyst Stephen C. Byrd reiterated an Overweight rating on Ameren Corp. AEE, but lowered the price target to $36.00. In the report, Byrd noted, “Despite adjusting our price target to $36 we remain of the view that the company offers value due to: 1) Upside to our price target which points to a total return potential of ~10% over the next twelve months; 2) One of the highest dividend yields amongst regulated utilities at 4.7%; 3) Our view that consensus estimates will rise as the merchant drag is removed; and 4) The potential for legislation in Missouri and Illinois that would support earned ROEs and/or the strong rate base growth.” Ameren Corp. closed on Thursday at $34.22.