Piper Sandler Lowers Price Target for Atlas Energy (AESI) as it Expands into Megawatt Market with 240MW Initial Order

Core Insights - Atlas Energy Solutions Inc. (NYSE:AESI) is recognized as one of the 9 hot energy stocks to buy, although Piper Sandler has maintained a Neutral rating and reduced the price target from $12 to $10 following the company's entry into the megawatt market with a 240MW initial order [1][2]. Company Performance - By early 2027, Atlas Energy Solutions Inc. anticipates deploying around 400MW, which includes 190MW of Moser assets, and has identified a demand opportunity of 2 GW, with 50% from data centers, 40% from commercial and industrial uses, and 10% from oil and gas [2]. - The company's core oilfield services segment is experiencing challenges, resulting in a 30% EBITDA miss for the quarter. Atlas reported earnings per share of -$0.19, with a net loss significantly lower than the projected $1.07. However, revenue reached $259.6 million, exceeding the anticipated $237.1 million despite the earnings shortfall [3]. Business Operations - Atlas Energy Solutions Inc. is involved in the production, processing, and sale of mesh and sand used as proppants during the well-completion process in the Permian Basin of West Texas and New Mexico [4].