In a report released today, James Ricchiuti from Needham reiterated a Buy rating on Advanced Energy (AEIS – Research Report), with a price target of $135.00.
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James Ricchiuti has given his Buy rating due to a combination of factors including Advanced Energy’s robust performance in the first quarter and promising outlook for the second quarter. The company reported a significant year-over-year revenue increase of 24%, surpassing both the midpoint of its guidance and market expectations, largely driven by strength in the Semiconductor and Data Center Computing sectors.
Furthermore, Advanced Energy’s earnings per share exceeded consensus estimates by 16%, attributed to higher volumes, improved gross margins, and lower operating expenses. The company anticipates continued growth in its key markets and new product lines, which is expected to drive further revenue and earnings per share growth in the upcoming quarter. Despite broader economic concerns, Ricchiuti believes that Advanced Energy is well-positioned to enhance its gross margins and accelerate earnings growth as market conditions improve.