UPDATE: Morgan Stanley Raises PT on Ameren Corp After Merchant Sale Announcement

Morgan Stanley analyst Stephen C. Byrd published a report on Ameren Corp

that reiterated its Overweight rating and raised the price target from $36 to $39 per share. Morgan Stanley reported that, “Following the merchant generation sale announcement, we remain comfortable with our Overweight-rating and continue to believe Ameren shares have upside. While we are lowering our price target to $36 per share as we were overly bullish on the ultimate sale of the business, we continue to believe 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.” Shares of Ameren Corp closed at $34.22 on Thursday.