AES (NYSE:AES) Rating Increased to Buy at Wall Street Zen

AES (NYSE:AES) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday.

A number of other analysts have also recently issued reports on the company. Morgan Stanley reissued an “equal weight” rating and issued a $15.00 target price (down from $23.00) on shares of AES in a research report on Friday. Jefferies Financial Group boosted their price objective on AES from $13.00 to $16.00 and gave the company a “hold” rating in a research note on Tuesday, February 3rd. Argus raised AES from a “hold” rating to a “buy” rating and set a $18.00 price objective for the company in a report on Friday, December 5th. Barclays reaffirmed an “equal weight” rating and issued a $15.00 target price on shares of AES in a report on Wednesday, February 4th. Finally, Mizuho downgraded shares of AES from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $24.27.

AES Stock Performance

Shares of AES stock opened at $14.16 on Friday. The business has a 50-day simple moving average of $15.11 and a 200-day simple moving average of $14.23. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.66 and a current ratio of 0.77. AES has a one year low of $9.46 and a one year high of $17.65. The company has a market cap of $10.09 billion, a PE ratio of 8.85, a P/E/G ratio of 0.55 and a beta of 0.95.

AES (NYSE:AES) last issued its quarterly earnings results on Monday, March 2nd. The utilities provider reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.13. AES had a net margin of 7.40% and a return on equity of 11.31%. The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.07 billion. During the same quarter in the previous year, the firm earned $0.54 earnings per share. On average, equities research analysts forecast that AES will post 1.93 EPS for the current fiscal year.

Hedge Funds Weigh In On AES

Several institutional investors have recently bought and sold shares of the company. Cbre Investment Management Listed Real Assets LLC raised its position in AES by 0.9% during the 3rd quarter. Cbre Investment Management Listed Real Assets LLC now owns 7,882,251 shares of the utilities provider’s stock worth $103,730,000 after buying an additional 69,622 shares during the last quarter. SG Americas Securities LLC increased its stake in shares of AES by 128.6% during the fourth quarter. SG Americas Securities LLC now owns 7,147,438 shares of the utilities provider’s stock worth $102,494,000 after acquiring an additional 4,021,385 shares during the period. Sound Shore Management Inc. CT increased its stake in shares of AES by 17.0% during the fourth quarter. Sound Shore Management Inc. CT now owns 6,898,342 shares of the utilities provider’s stock worth $98,922,000 after acquiring an additional 1,002,530 shares during the period. Mitsubishi UFJ Trust & Banking Corp raised its holdings in AES by 975.3% during the second quarter. Mitsubishi UFJ Trust & Banking Corp now owns 3,086,164 shares of the utilities provider’s stock worth $32,466,000 after purchasing an additional 2,799,148 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in AES by 0.4% in the third quarter. Rhumbline Advisers now owns 1,329,577 shares of the utilities provider’s stock valued at $17,497,000 after purchasing an additional 5,669 shares during the period. 93.13% of the stock is owned by institutional investors and hedge funds.

AES News Summary

Here are the key news stories impacting AES this week:

• Positive Sentiment: Q4 earnings and volume: AES reported stronger-than-expected Q4 results and saw elevated trading volume after the print, which supports near-term fundamentals and cash generation. Read More.
• Neutral Sentiment: Consent solicitation for senior notes: AES launched consent solicitations to amend indentures on several outstanding notes — a technical step that could provide covenant relief or flexibility around the buyout/financing but is standard in deal processes. Read More.
• Neutral Sentiment: Analyst round-up: Coverage pieces summarize differing analyst views on AES’s outlook, useful context but not a single catalyst. Read More.
• Negative Sentiment: Morgan Stanley cuts price target: Morgan Stanley reaffirmed an “Equal Weight” rating but sharply reduced its price target to $15 (from $23), materially lowering implied upside and signaling less enthusiasm for the buyout valuation. Read More.
• Negative Sentiment: Mizuho downgrades to Hold: Mizuho cut AES to “Hold”, adding to analyst pressure and reducing conviction for further upside absent a higher offer. Read More.
• Negative Sentiment: Community and regulatory pushback: AES canceled in-person community open houses after online threats; Indiana officials and the state treasurer have raised concerns that the AES–BlackRock deal won’t prioritize local residents — a reputational and political headwind that could draw scrutiny. Read More.
• Negative Sentiment: Shareholder investigation into buyout price: A law firm launched a probe arguing the $15 buyout price may undervalue AES, increasing the risk of litigation or demands for a higher offer. Read More.
• Negative Sentiment: Customer complaints / local media coverage: Reports of rising winter bills and customer concern in AES Indiana increase political sensitivity around the transaction and could influence regulators or public opinion. Read More.

AES Company Profile

AES Corporation is a global energy company focused on the generation and distribution of electricity across diversified markets. Headquartered in Arlington, Virginia, AES develops, builds and operates power plants and distribution systems that serve residential, industrial and commercial customers. The company’s portfolio includes thermal, renewable and battery energy storage facilities designed to deliver reliable and sustainable electricity solutions.

Through its subsidiaries, AES operates a balanced mix of power generation assets, including natural gas, coal and renewables such as solar and wind.