The Analyst Verdict: AES In The Eyes Of 4 Experts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on AES (NYSE:AES) in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for AES, revealing an average target of $13.25, a high estimate of $16.00, and a low estimate of $9.00. The current average, unchanged from the previous average price target, holds steady.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of AES among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AES. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AES compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for AES's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of AES's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on AES analyst ratings.

Delving into AES's Background

AES is a global power company that operates in 15 countries. Its generation portfolio as of year-end 2024 totals over 32 gigawatts, including renewable energy (50%), gas (32%), coal (16%), and oil (2%). AES has majority ownership and operates six electric utilities distributing power to more than 2.5 million customers.

Understanding the Numbers: AES's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: AES's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -5.15%. 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.57%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): AES's ROE stands out, surpassing industry averages. With an impressive ROE of 1.29%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): AES's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.1%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 8.82, caution is advised due to increased financial risk.

The Significance of Analyst Ratings Explained

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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