AES Corp. downgraded to Hold from Buy at Jefferies

Jefferies downgraded AES Corp. (AES) to Hold from Buy with a price target of $10, down from $15. The firm updated its valuation to reflect more cautious view on the company’s growth prospects and balance sheet, which it believes it weaker than appreciated. AES has more insulation from tariffs with its domestic strategy but the company’s international ownership and overall complexity “are unlikely to resonate with investors now,” the analyst tells investors in a research note. The company’s strategy relies on large Inflation Reduction Act tax credits but AES has only safe-harbored assets through 2027, contends Jefferies.