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AES Receives Price Target Increase and Strong Buy Rating After Brazilian Renewables Portfolio Sale

By Don Francis, Editor
May 18, 2024 9:29 AM UTC
AES Receives Price Target Increase and Strong Buy Rating After Brazilian Renewables Portfolio Sale

Mizuho's Anthony Crowdell raised their price target on Aes (NYSE: AES) by 14.3% from $21 to $24 on 2024/05/17. The analyst maintained their Strong Buy rating on the stock.

The price target increase came in response to AES's announcement of the sale of its 47.3% stake in its Brazilian renewables portfolio to Auren Energia for a whopping $640 million. Crowdell believes that this transaction has a positive impact on AES's overall position in the market.

In addition to the revised price target for AES, Crowdell also made changes to the price targets of other companies in their portfolio. Edison International received a 13.3% increase in the price target, rising from $75 to $85, while Sempra saw its price target raised by 8.9% from $79 to $86. In both cases, the Strong Buy rating was maintained.

The positive sentiment towards AES is reflected in the analyst ratings. Currently, 100% of top-rated analysts rate AES as a Strong Buy or Buy, with no analysts recommending a Hold or selling the stock.

Looking ahead, the consensus forecast among analysts predicts that AES will deliver earnings per share (EPS) of $1.28 for the upcoming year. If this forecast holds true, it would represent a significant increase of 68.2% on a year-over-year basis.

In terms of stock performance, AES has been on an upward trajectory. Since its latest quarterly report on May 2, 2024, the stock price has surged by 12.4%. Year-over-year, AES is up by 1.6%. However, it's worth noting that during this period, AES has been trailing behind the S&P 500, which has seen a remarkable 27.5% increase.

Mizuho analyst Anthony Crowdell has established a solid reputation in the industry. WallStreetZen ranks Crowdell in the top 13% out of 4,587 Wall Street analysts, with an average return of 7.5% and an impressive 53.4% win rate. The analyst specializes in the Utilities and Technology sectors.

As for AES Corporation, it is a diversified power generation and utility company. The company operates power plants that generate and sell electricity to utilities, industrial users, and other intermediaries. Additionally, AES operates utilities that transmit and sell electricity to end-user customers across various sectors including residential, commercial, industrial, and governmental. AES utilizes a mix of energy sources such as coal, gas, hydro, wind, solar, and biomass to generate electricity. The company was incorporated in 1981 and has its headquarters in Arlington, VA.

Is AES a Buy, Hold or Sell?

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