Morningstar advises selective approach on US utilities amid sector pullback

Alliant Energy

24/09/2025 14:44

** Morningstar says it thinks investors will have to be selective to find U.S. utilities that can produce consistent, long-term earnings growth that justifies their premium valuations

** Brokerage adds that utilities is the only sector down since July, despite a dovish interest rate turn

** It expects data center energy demand to triple in the next five years before energy efficiency and a shift to more inference, or predictive, models begin to slow data centers' energy use growth

** "We think mid-cap utilities in the Midwest have the best chance of realizing the earnings growth and return expectations that are priced into their stock" - Morningstar

** Brokerage adds that the market underappreciates the growth potential of top picks Alliant Energy LNT.O and Duke Energy DUK.N

 (Reporting by Pooja Menon in Bengaluru)

 ((Pooja.Menon@thomsonreuters.com;))