What Are Wall Street Analysts’ Target Price for AES Corporation Stock?

Based mostly in Arlington, Virginia, The AES Company (AES) operates a considerable worldwide power enterprise that spans the era and supply of energy worldwide. The corporate’s actions embody setting up, funding, and overseeing a spread of power tasks, from renewable options to traditional energy sources.

By means of its world footprint and revolutionary partnerships, AES provides reliable electrical energy to numerous sectors, boosting power entry in dozens of nations whereas prioritizing sustainable operations. The corporate has a market capitalization of $9.88 billion.

Not too long ago, the corporate’s inventory value has skilled fluctuations. Over the previous 52 weeks, the inventory has declined by 15.5% as a consequence of weak financials. Nonetheless, worries have considerably subsided because the 12 months has progressed, because the inventory has elevated by 7.8% year-to-date (YTD). The shares reached a 52-week low of $9.46 in Might, however are up 46.6% from that stage.

The inventory has broadly underperformed the S&P 500 Index ($SPX), which has gained 17.7% and 16.3% over the identical intervals, respectively. Turning our focus to the sector-specific The Utilities Choose Sector SPDR Fund (XLU), we see that the ETF is up by 12.7% over the previous 52 weeks and 17.7% YTD, outperforming AES’s inventory.

On July 31, AES reported its second-quarter outcomes for fiscal 2025. The corporate reported outcomes that had been fairly combined. Its income decreased 3% year-over-year (YOY) to $2.86 billion, primarily as a consequence of a 7.1% annual decline in non-regulated revenues. Alternatively, its adjusted EPS elevated from $0.38 in Q2 2024 to $0.51 in Q2 2025. Whereas the adjusted EPS determine was greater than the $0.39 that Wall Avenue analysts had anticipated, the topline missed the anticipated $3.30 billion.

Wall Avenue analysts nonetheless consider in AES’ potential to develop its backside line. For the fiscal 12 months 2025, which ends in December 2025, Wall Avenue analysts count on AES’ EPS to develop 1.4% YOY to $2.17 on a diluted foundation. EPS can also be anticipated to extend 8.8% to $2.36 in fiscal 2026. The corporate has a stable historical past of surpassing consensus estimates, topping them in three of the 4 trailing quarters.

Among the many 12 Wall Avenue analysts overlaying AES’ inventory, the consensus is a “Reasonable Purchase.” That’s primarily based on 5 “Sturdy Purchase” rankings, 5 “Holds,” one “Reasonable Promote,” and one “Sturdy Promote.” The rankings configuration has remained comparatively unchanged over the previous three months.

Final month, Morgan Stanley analyst David Arcaro raised the worth goal on the inventory from $23 to $24, whereas sustaining an “Obese” ranking on its shares, because the agency raised the worth targets of regulated and diversified utilities. As part of their third-quarter earnings preview of the ability and utilities sector, Barclays analysts raised the worth goal on AES from $14 to $15, whereas conserving an “Obese” ranking.

AES’ imply value goal of $15.50 signifies an 11.8% upside over present market costs. The Avenue-high Morgan Stanley-given value goal of $24 implies a possible upside of 73%.

On the date of publication, Anushka Mukherjee didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All info and knowledge on this article is solely for informational functions. This text was initially revealed on Barchart.com