Zacks Investment Research upgraded shares of AES (NYSE:AES) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. The brokerage currently has $13.00 target price on the utilities provider’s stock.
According to Zacks, “AES Corp continues to streamline its portfolio through asset divestments and by exiting markets and businesses where it does not have or cannot develop a competitive advantage. The company is focused on preserving its financial flexibility by reducing cost. Moreover, it is expanding its footprint rapidly in the overseas market. The company is aiming at closing its coal-fired operations to reduce its exposure to carbon emissions and shifting towards a cleaner energy space. Besides asset divestment, the company is teaming up with other companies to expand its footprint in potential markets. A stable financial position also allows the company to exercise several initiatives, including debt prepayment and refinancing, share repurchase and dividend payments. AES Corp. has outperformed its broader industry over the last one year. However, the company's focus on long-term supply contracts exposes it to commodity price risks.”
A number of other research analysts have also recently commented on the stock. ValuEngine cut shares of AES from a buy rating to a hold rating in a report on Wednesday, April 4th. JPMorgan Chase increased their target price on shares of AES from $12.00 to $13.00 and gave the stock an overweight rating in a report on Monday, March 19th. SunTrust Banks set a $14.00 price objective on AES and gave the company a buy rating in a research note on Monday, February 12th. UBS assumed coverage on AES in a research note on Friday, February 2nd. They issued a neutral rating and a $12.00 price objective for the company. Finally, Morgan Stanley lowered their price objective on AES from $14.00 to $12.50 and set an equal weight rating for the company in a research note on Wednesday, December 13th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and four have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $12.64.
AES (NYSE:AES) last posted its earnings results on Tuesday, February 27th. The utilities provider reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. The firm had revenue of $2.64 billion during the quarter, compared to analysts’ expectations of $3.47 billion. AES had a negative net margin of 8.77% and a positive return on equity of 16.52%. The business’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.30 earnings per share. analysts anticipate that AES will post 1.2 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 15th. Stockholders of record on Tuesday, May 1st will be paid a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 4.59%. AES’s dividend payout ratio is currently 48.15%.
Institutional investors have recently added to or reduced their stakes in the company. Trilogy Capital Inc. acquired a new position in shares of AES in the fourth quarter valued at approximately $135,000. Cypress Capital Group acquired a new position in shares of AES in the third quarter valued at approximately $138,000. Beacon Investment Advisory Services Inc. acquired a new position in shares of AES in the fourth quarter valued at approximately $142,000. Buckley Wealth Management LLC acquired a new position in shares of AES in the fourth quarter valued at approximately $163,000. Finally, Koch Industries Inc. acquired a new position in shares of AES in the fourth quarter valued at approximately $186,000. 93.44% of the stock is owned by institutional investors.
AES Company Profile
The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. It is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and the Caribbean (MCAC); Europe, and Asia.
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