Analyst Krish Sankar from TD Cowen maintained a Hold rating on Advanced Energy and increased the price target to $140.00 from $118.00.
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Krish Sankar has given his Hold rating due to a combination of factors influencing Advanced Energy’s current market position. The company has shown strong performance in certain areas, such as the data center segment, which reached a record $142 million in the June quarter and is projected to continue its growth trajectory. Additionally, the traction on next-generation semiconductor products and the early signs of recovery in the industrial and medical sectors are positive indicators for future growth.
However, there are mixed signals that temper the overall outlook. The semiconductor sales, while showing some resilience, are expected to grow at a more modest rate than previously anticipated, which could be viewed negatively by investors. Furthermore, potential headwinds from tariffs could impact gross margins, although there are strategies in place to mitigate these effects. Given these mixed factors, the decision to maintain a Hold rating reflects a cautious approach, balancing the company’s growth prospects with the challenges it faces.
Sankar covers the Technology sector, focusing on stocks such as Apple, MKS, and Seagate Tech. According to TipRanks, Sankar has an average return of 18.0% and a 56.76% success rate on recommended stocks.