Wunderlich Reiterates Sell and PT of $28 on Ameren Corporation

Wunderlich Securities reiterated its Sell rating on Ameren Corporation AEE. At the same time, Wunderlich left its price target unchanged at $28. In a research report published today, Wunderlich commented on the new bill recently passed by the Illinois legislature. The bills is favorable to Ameren, but Governor Quinn has said he will veto the bill. In the report, Wunderlich states, "The Illinois legislature approved Senate Bill 1652 over the last days of the legislative session, which ended on May 31. However, Governor Quinn has said he will veto the bill. The legislature would need nine additional votes to override a gubernatorial veto in the fall veto session and, at this juncture, it appears too early to place any substantial likelihood on this occurring. Investors appear to have built some expectation of passage into Ameren Corporation (AEE) stock, however, which we believe is unwarranted given both the uncertainty of passage as well as the timeframe for an ultimate resolution (likely fall). We maintain our Sell rating and $28 target." On Wednesday, Ameren lost 1.62% to close the day at $29.23.