TD Cowen analyst Krish Sankar maintained a Hold rating on Advanced Energy (AEIS – Research Report) today and set a price target of $118.00.
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Krish Sankar has given his Hold rating due to a combination of factors affecting Advanced Energy’s outlook. Despite the company exceeding expectations for revenue and earnings per share in the December 2024 quarter, driven by strong semiconductor demand and a robust datacenter segment, there are concerns about the near-term future. The guidance for the March 2025 quarter suggests a potential decline in sales, which creates uncertainty about sustained growth.
Sankar notes that while there is an anticipated recovery in semiconductor sales and continued strength in datacenter products expected to drive year-over-year growth in 2025, much of this is reliant on a stronger performance in the second half of the year. Additionally, improvements in gross margins seen in the December 2024 quarter were partially due to factory efficiencies and enhanced sales volumes, which may not be sustained in the immediate future. Therefore, the Hold rating reflects a cautious stance, considering both the recent positive performance and the uncertainties in the upcoming periods.
According to TipRanks, Sankar is a 5-star analyst with an average return of 20.5% and a 61.08% success rate. Sankar covers the Technology sector, focusing on stocks such as Micron, Western Digital, and Pure Storage.