X
<

These S&P 500 Utilities Offer Big Upsides after the Rate Hike

PART:
1 2 3 4 5 6 7 8 9 10 11 12 13
Part 5
These S&P 500 Utilities Offer Big Upsides after the Rate Hike PART 5 OF 13

Analysts Expect AES to Have a Decent Upside

AES

According to Wall Street analysts, AES Corporation (AES) has a one-year price target of $12.52, compared with its current price of $11.30. The price target implies an estimated upside of nearly 11%. It’s one of the most attractive upsides among the S&P 500 Utilities (XLU). Of the 12 analysts tracking AES, five recommend it as a “hold,” four recommend it as a “buy,” one recommends it as a “strong buy,” and two recommend it as a “sell.”

Analysts Expect AES to Have a Decent Upside

Interested in AES? Don't miss the next report.

Receive e-mail alerts for new research on AES

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

 

The potential upside proposed by AES is much higher than what industry giants are currently offering. Analysts have assigned Southern Company (SO) a price target of $50.67. Compared with its current price of $50.37, the target implies a rise of just 0.9% over the next year. Duke Energy’s (DUK) price target is $80.67, and its current price is $81.87, which implies a fall of 1.0% over the next year.

AES: Outlook

AES generates more than 80% of its total earnings from competitive operations. Also, it operates in 17 countries. Nearly 70% of its total earnings come from outside the United States. Therefore, a stronger dollar tends to dent AES’s earnings, as it has in the past several quarters. Less stable earnings lead to volatile stock movements, making it a risky utility.

On a positive note, AES’s dividend growth has been remarkable in the last few years. Importantly, AES’s dividends are expected to rise ~10% going forward, one of the largest rises in the sector (XLU). We’ll discuss its dividend profile in detail later in this series.

X

Please select a profession that best describes you: