Analyst Joseph Quatrochi of Wells Fargo maintained a Hold rating on Advanced Energy (AEIS – Research Report), retaining the price target of $110.00.
Joseph Quatrochi has given his Hold rating due to a combination of factors influencing Advanced Energy’s performance. The company has shown strong results in the semiconductor and data center sectors, which have positively impacted its earnings. However, despite these positive developments, the growth expectations for the second half of 2025 are only slightly above the first half, which suggests limited upside potential.
Additionally, while Advanced Energy has managed to mitigate some of the negative impacts from tariffs, the company’s gross margin is expected to see only modest improvements. The closure of its China facility is anticipated to have a positive effect on margins, but the full benefits will not be realized until later in the year. These factors, combined with the current market conditions and the company’s guidance, have led to a cautious outlook, justifying the Hold rating.
Quatrochi covers the Technology sector, focusing on stocks such as ON Semiconductor, Cadence Design, and Monolithic Power. According to TipRanks, Quatrochi has an average return of 9.9% and a 46.92% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $118.00 price target.