Analyst Krish Sankar of TD Cowen maintained a Hold rating on Advanced Energy, boosting the price target to $210.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Krish Sankar has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Advanced Energy’s future performance. On the positive side, the company has reported strong growth in datacenter sales, which are expected to continue expanding significantly in the coming years. Additionally, there are promising developments in the semiconductor sector, with new products anticipated to drive growth in the latter half of 2026. Improvements in the industrial and medical markets also contribute to a positive outlook as inventory levels stabilize.
However, Sankar’s cautious stance is influenced by several mixed and negative factors. The company’s valuation appears high compared to its peers, trading at a substantial price-to-earnings multiple based on 2026 estimates. Furthermore, while inventory levels are improving, a challenging macroeconomic environment poses risks to growth in industrial, medical, and telecom sectors. Additionally, a convertible note offering could become dilutive to earnings if the share price exceeds a certain threshold. These considerations lead to a Hold rating, reflecting a balanced view of the company’s prospects.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AEIS in relation to earlier this year.