Advanced Energy Industries price target raised to $150 from $130 at Stifel

Investing.com - Stifel raised its price target on Advanced Energy Industries (NASDAQ:AEIS) to $150 from $130 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The new target approaches the Street’s high of $160, with InvestingPro data showing the stock trading near its 52-week high of $145.52, having delivered an impressive 33.5% return over the past year.

The firm expects Advanced Energy to at least meet its estimates when it reports earnings on Tuesday after market close. With 8 analysts recently revising their earnings estimates upward according to InvestingPro data, and a strong Buy consensus rating of 1.82, Stifel anticipates results will reflect acceleration in the datacenter segment, a modest decline in semiconductor capital equipment, and early inflection in Industrial/Medical markets.

For the third quarter, Stifel models revenue growth of 1% quarter-over-quarter, compared to consensus expectations of flat performance. This forecast assumes sustained strength in datacenter business while semiconductor capital equipment industry conditions have temporarily plateaued entering the second half of the year.

Key focus areas for the upcoming earnings include datacenter growth outlook and visibility into the second half of 2025 and 2026, semiconductor capital equipment trends and market share, and gross margin trajectory given mix and tariff headwinds.

Stifel maintained its 2025 earnings per share estimates but raised its 2026 projections based on improving visibility around datacenter and hyperscale investment. The new $150 price target represents 21 times Stifel’s 2026 EPS estimate of $6.95 plus net cash per share. Currently trading at a P/E ratio of 69.4x, the $5.26 billion market cap company appears overvalued according to InvestingPro’s Fair Value analysis.

In other recent news, Advanced Energy Industries announced a quarterly cash dividend of $0.10 per share. This dividend is scheduled to be payable on September 5, 2025, to shareholders who are recorded by August 25, 2025. Additionally, Benchmark has reiterated its Buy rating for Advanced Energy Industries. The research firm emphasized the company’s strength in the artificial intelligence and datacenter sectors. It noted that major hyperscale capital expenditure is projected to rise by about 40% year-over-year, reaching approximately $322 million in 2025. AI and datacenter spending are expected to remain the primary growth drivers in this area. These developments highlight the company’s ongoing focus on strategic growth areas.

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