What Analysts Are Saying About AES Stock

5 analysts have shared their evaluations of AES AES during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $16.6, a high estimate of $21.00, and a low estimate of $12.00. This current average represents a 24.55% decrease from the previous average price target of $22.00.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive AES. The following summary outlines 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of AES compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of AES's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into AES's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on AES analyst ratings.

Get to Know AES Better

AES is a global power company that operates in 15 countries. 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.

AES: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: AES's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -4.22%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.

Net Margin: AES's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 15.26%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AES's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 15.73%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): AES's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.03%, the company may face hurdles in achieving optimal financial returns.

Debt Management: AES's debt-to-equity ratio surpasses industry norms, standing at 8.95. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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