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Research Alert: The Aes Corporation: Takeover Rumors Drive Stock Higher, Maintaining Hold View
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Research Alert: The Aes Corporation: Takeover Rumors Drive Stock Higher, Maintaining Hold View
Jul 11, 2025 7:14 AM

09:50 AM EDT, 07/11/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Shares of global power generator and utility operator AES ( AES ) jumped on unconfirmed Bloomberg reporting about a potential sale. Shares have been under pressure since late 2024, part of which we attribute to a less favorable environment for renewable energy developers under the Trump administration. The recently-passed One Big Beautiful Bill legislation includes notable reductions to clean energy tax credits for wind and solar. We think this poses longer-term headwinds for AES ( AES ), the ninth-largest owner of planned U.S. solar installations from 2025 to 2029, according to May 21 data from S&P Global Market Intelligence. With alternative asset managers, sovereign wealth funds, and other large institutional investors making sizable investments in the energy space over recent years, we think AES's ( AES ) depressed valuation and diversified asset base might make it an attractive buyout play. We maintain our Hold view and 12-month target price of $13. We leave our EPS estimates unchanged at $2.16 for 2025 and at $2.25 for 2026.

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