Analyst Duksan Jang of Bank of America Securities reiterated a Buy rating on Advanced Energy (AEIS – Research Report), boosting the price target to $118.00.
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Duksan Jang has given his Buy rating due to a combination of factors including Advanced Energy’s resilience to macroeconomic challenges and its strong sales and earnings growth projections. The company’s first-quarter sales exceeded expectations, and its outlook for the upcoming quarter remains robust, driven by demand in the semiconductor and data center sectors. Additionally, Advanced Energy is poised to benefit from the launch of new product lines, which are expected to enhance margins and market share through 2026.
Moreover, the company’s gross margin expansion plan is progressing well, with an anticipated EPS compound annual growth rate of 27% over the next three years, significantly outpacing its peers. Despite potential risks such as dependency on the wafer fabrication equipment market and inventory challenges in certain segments, Advanced Energy’s strategic positioning and operational efficiencies underpin the positive outlook. Consequently, the price objective has been raised to $118, reflecting confidence in the company’s growth trajectory.
AEIS’s price has also changed slightly for the past six months – from $107.770 to $97.410, which is a -9.61% drop .