UPDATE: Bank of America Merrill Lynch Raises PO on Alliant Energy to $41

Bank of America Merrill Lynch is out with its report today on Alliant Energy LNT, raising its PO from $38 to $41. In a note to clients, Bank of America Merrill Lynch writes, "We are boosting our price objective on LNT to $41 from $38 as we are shifting our valuation to reflect the 2013 earnings upside. We apply group-average 13x multiples to the utility operations, a 15x multiple to transmission earnings, and 11x nonregulated earnings and corporate overhead. We reiterate our Neutral rating, as we believe that LNT has strong earnings growth prospects but the upside potential appears to be in 2013 and beyond. In the meantime, with no base rate cases this year, we believe earnings in 2011 and 2012 will be driven more by cost control and AFDC." Shares of LNT closed Thursday at $40.63, down 0.07% from Wednesday's close.