Argus Upgrades AES (AES) to Buy as Data Center Demand Grows

Core Viewpoint - The AES Corporation is recognized as a promising investment in the hydrogen sector, with recent upgrades from analysts indicating positive growth potential driven by data center demand and renewable energy projects [1][2][3]. Group 1: Analyst Upgrades - Argus upgraded The AES Corporation stock from Hold to Buy on December 5, highlighting its potential in the hydrogen market [1]. - Jefferies also upgraded AES stock from Underperform to Hold on November 11, raising the price target from $12 to $13, reflecting confidence in data center opportunities [3]. Group 2: Financial Developments - The AES Corporation's Board declared a quarterly dividend of $0.17595 per share, unchanged since the increase in Q1 2025, with payments to shareholders recorded by January 30, 2026 [2]. - Jefferies noted that AES Indiana is finalizing significant deals, while AES Ohio has signed agreements for over 2.1 GW of data centers, indicating strong growth prospects [4]. Group 3: Business Focus - The AES Corporation is focused on renewable energy projects, including one of the largest green hydrogen facilities in the U.S., producing green hydrogen through electrolysis powered by wind and solar energy [5].