Beyond The Numbers: 8 Analysts Discuss AES Stock

Ratings for AES AES were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $22.25, a high estimate of $25.00, and a low estimate of $19.00. Witnessing a positive shift, the current average has risen by 3.01% from the previous average price target of $21.60.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive AES is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AES. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AES compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of AES's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of AES's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on AES analyst ratings.

Get to Know AES Better

AES is a global power company. Its generation portfolio as of year-end 2023 totals over 35 gigawatts, including renewable energy (53%), gas (27%), coal (18%), and oil (2%). AES has majority ownership and operates six electric utilities distributing power to more than 2.5 million customers.

A Deep Dive into AES's Financials

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Negative Revenue Trend: Examining AES's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -3.01% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: AES's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -3.17%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AES's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -5.24%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): AES's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.21%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 16.29, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.