Analyst James Ricchiuti of Needham reiterated a Buy rating on Advanced Energy, boosting the price target to $290.00.
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James Ricchiuti has given his Buy rating due to a combination of factors pointing to sustained growth and improving profitability at Advanced Energy. He highlights that the company is entering 2026 with especially strong momentum in its data center computing segment and a steadily improving backdrop in its semiconductor business, which together account for roughly four-fifths of total revenue. Following discussions with management at the Needham Growth Conference and conversations with other industry participants, he believes current market expectations for these two segments in both this year and next may prove conservative.
In addition, Ricchiuti notes that the company’s industrial and medical segment appears to be in the early stages of a recovery, even if that rebound is expected to be gradual. He views the simultaneous strength in data center, semiconductor, and a recovering industrial/medical business as a “three-legged” demand scenario that can support meaningful gains in margins and earnings through 2026 and 2027. This multi-year earnings visibility and the improving demand profile underpin his decision to reaffirm a Buy rating on AEIS and to lift his price target from $225 to $290.
In another report released today, TipRanks – Google also reiterated a Buy rating on the stock with a $267.00 price target.