David Arcaro, an analyst from Morgan Stanley, reiterated the Buy rating on AES. The associated price target remains the same with $23.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight AES’s strong financial performance and strategic positioning. The company reported impressive second-quarter results with earnings per share significantly surpassing expectations, and adjusted EBITDA also exceeding consensus estimates. AES’s management has reaffirmed their earnings and EBITDA guidance for 2025, indicating confidence in their financial trajectory.
Additionally, AES has shown robust growth in its renewables sector, with substantial bookings since the previous quarter, and a resilient backlog that is well-protected from policy changes. The company’s strategic focus on securing a US-based supply chain and avoiding federal land projects further enhances its stability. This, combined with a positive outlook for the utility segment, supports the overall growth prospects of AES, justifying the Buy rating by David Arcaro.
In another report released on July 22, J.P. Morgan also maintained a Buy rating on the stock with a $15.00 price target.