Behind AES Corporation’s Price Targets and Analyst Views



AES Corporation

Analysts see an upside potential of 12% in AES Corporation (AES) stock from its current levels. According to the Wall Street analyst consensus, the price target for AES is $12.92, as compared to its current market price of $11.56.

Of the ten analysts tracking AES Corporation, one analyst has recommended the stock as a “strong buy,” while five have recommended a “hold,” and four have recommended a “buy.” None of the analysts have recommended AES as a “sell” as of June 26, 2017.

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AES in the long term

AES is the highest geographically diversified utility company in the US utility sector (XLU). It has a significant presence in 17 countries, with 27 GW (gigawatts) of unregulated capacity. It has withdrawn from ten countries, including China and Nigeria, in the past five years to minimize risk. Nearly 70% of its consolidated earnings come from outside the US.

Due to the stronger US dollar, AES’s earnings have been negatively impacted over the past few years. An interest rate increase in the US may further strengthen the dollar but could also hamper AES’s overseas cash flows. A revival in wholesale power prices could help AES going forward.

Californian utility Sempra Energy (SRE) also has noteworthy operations outside the US. Sempra stock has a price target of $119.07, as compared to its current market price of $112.81, which implies a potential gain of 5.5%.

According to Wall Street analysts, CenterPoint Energy (CNP) has a price target of $27.81, as compared to its current price of $28.05, which implies a potential fall of 1% over the next 12 months.


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