We raise our 12-month price target by $1 to $73, 21.3x our 2026 EPS estimate (up $0.01 to $3.43; 2025 estimate remains $3.21), above LNT's five-year historical forward average of 18.7x and near peers based on competitive near-term EPS and our view of dividend growth expectations, as well as indications of strengthening electricity sales and rate base growth in the coming years. As of Q3 earnings, all of LNT's battery storage and wind investments were safe-harbored, indicating strong positioning despite changes to clean energy tax credits under the OBBBA legislation, in our view. We look favorably on LNT's guidance for EPS growth increasing to 7%+ in 2027-2029, part of which reflects momentum with data center dealmaking in Wisconsin in Iowa. Shares yield 3.2% based on projected 2026 dividends.

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