Argus Research Upgrades The AES Corporation (AES) To Buy, Price Target at $18

Core Viewpoint - The AES Corporation has been upgraded to a Buy rating by Argus Research, with a price target of $18, driven by sustainable profit growth and expected improvements in its Renewables segment [2]. Group 1: Company Performance - The AES Corporation reported an adjusted EPS of $0.75 for Q3 fiscal 2025, exceeding estimates of $0.712 and reflecting a year-over-year increase of 5.6% [4]. - The company reaffirmed its full-year guidance, projecting adjusted EBITDA between $2.65 billion and $2.85 billion, and adjusted EPS in the range of $2.10 to $2.26 [4]. - The stock has gained 8% year-to-date in 2025, indicating modest returns [5]. Group 2: Analyst Ratings and Market Position - As of December 5, approximately 60% of Wall Street analysts rated AES as Buy or better, with a one-year average price target of $15.29, suggesting an upside potential of nearly 10% [3]. - AES is noted to have one of the lowest P/E ratios among the S&P 500 in 2025, positioning it as an attractive investment opportunity [1]. Group 3: Future Growth Potential - The company is set to triple its renewables capacity by 2027, indicating significant growth potential in its Renewables SBU [2].