Wells Fargo Raises AEE Estimates

Ameren Corporation AEE initiated 2011 EPS guidance of $2.20-2.60, Wells Fargo reports. “We are raising our 2011E and 2012E to $2.40 and $2.20 from $2.30 and $2.15 driven by lower expenses (fuel costs, D&A and interest) at Genco, net of other adjustments,” Wells Fargo writes. “Our 2013E and 2014E EPS are $1.80 & $1.95 vs. $1.70 and $1.95, previously. We are maintaining our range of $28-29 and reiterating our Market Perform rating. “We are increasing our 2011E EPS to $2.40 from $2.30 reflecting better-than-expected Genco guidance, net of a slightly lower assumed contribution from Regulated. Genco guidance of $0.15-0.30 compared to our estimate $0.04. “The disconnect largely related to lower-than-expected fuel costs ($0.11), D&A ($0.02) and interest expense ($0.04). We are raising our 2012E to $2.20 from $2.15 reflecting lower costs, net of other adjustments to our model.” Ameren Corporation currently trades at $27.74.