James Ricchiuti, an analyst from Needham, reiterated the Buy rating on Advanced Energy (AEIS – Research Report). The associated price target remains the same with $145.00.
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James Ricchiuti has given his Buy rating due to a combination of factors including Advanced Energy’s impressive performance in the Semiconductor and Data Center Computing segments, which drove fourth-quarter revenues beyond the upper guidance limit. The company’s earnings per share also met the higher end of guidance and surpassed consensus estimates by 18%.
Looking ahead, the management anticipates a moderation in growth for the Semiconductor sector in the first quarter but still expects to surpass market growth for the entire year with the introduction of new products. While the Industrial & Medical sectors are lagging, with a recovery anticipated by the end of the second quarter, the continued robust demand in Data Center Computing into 2025 underpins a positive outlook. Additionally, guidance for the first quarter exceeded expectations, suggesting high single-digit growth for the year, and the company is on track for accelerated earnings growth in 2025, justifying the Buy recommendation.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AEIS in relation to earlier this year.