AES (NYSE:AES) Earns “Equal Weight” Rating from Morgan Stanley

AES (NYSE:AES)‘s stock had its “equal weight” rating reissued by research analysts at Morgan Stanley in a research note issued on Friday, Marketbeat Ratings reports. They presently have a $15.00 price objective on the utilities provider’s stock, down from their prior price objective of $23.00. Morgan Stanley’s price target points to a potential upside of 5.93% from the company’s previous close.

A number of other equities analysts have also recently issued reports on AES. Barclays restated an “equal weight” rating and set a $15.00 price objective on shares of AES in a report on Wednesday, February 4th. Argus raised shares of AES from a “hold” rating to a “buy” rating and set a $18.00 target price for the company in a research note on Friday, December 5th. Jefferies Financial Group raised their price target on shares of AES from $13.00 to $16.00 and gave the stock a “hold” rating in a research note on Tuesday, February 3rd. Mizuho cut shares of AES from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, March 3rd. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of AES in a research report on Monday, December 29th. Four research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, AES presently has a consensus rating of “Hold” and an average target price of $24.27.

AES Price Performance

AES stock opened at $14.16 on Friday. The stock has a market cap of $10.09 billion, a PE ratio of 11.24, a P/E/G ratio of 0.54 and a beta of 0.95. AES has a 12 month low of $9.46 and a 12 month high of $17.65. The company has a 50-day moving average price of $15.11 and a 200 day moving average price of $14.23. The company has a current ratio of 0.77, a quick ratio of 0.66 and a debt-to-equity ratio of 2.94.

AES (NYSE:AES) last posted its quarterly earnings data on Monday, March 2nd. The utilities provider reported $0.81 earnings per share 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 for the quarter, compared to analyst estimates of $3.07 billion. During the same period in the prior year, the company posted $0.54 EPS. Equities research analysts anticipate that AES will post 1.93 earnings per share for the current year.

Institutional Trading of AES

Hedge funds have recently modified their holdings of the company. Dorsey & Whitney Trust CO LLC boosted its holdings in shares of AES by 4.8% in the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 14,658 shares of the utilities provider’s stock valued at $210,000 after buying an additional 671 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in AES by 2.5% in the fourth quarter. New Mexico Educational Retirement Board now owns 32,922 shares of the utilities provider’s stock valued at $472,000 after acquiring an additional 800 shares in the last quarter. Zions Bancorporation National Association UT grew its holdings in AES by 3.1% in the fourth quarter. Zions Bancorporation National Association UT now owns 28,581 shares of the utilities provider’s stock worth $410,000 after purchasing an additional 852 shares during the last quarter. S&CO Inc. increased its position in shares of AES by 6.3% during the fourth quarter. S&CO Inc. now owns 17,000 shares of the utilities provider’s stock worth $243,000 after purchasing an additional 1,000 shares in the last quarter. Finally, TD Private Client Wealth LLC boosted its position in shares of AES by 50.8% in the 3rd quarter. TD Private Client Wealth LLC now owns 3,401 shares of the utilities provider’s stock worth $45,000 after purchasing an additional 1,146 shares in the last quarter. 93.13% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about AES

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.

About AES

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.