Street Calls of the Week
Investing.com - KeyBanc Capital Markets raised its price target on Advanced Energy Industries (NASDAQ:AEIS) to $195 from $180 on Friday, while maintaining an Overweight rating on the stock. The company, now valued at $6.8 billion, has seen its shares surge 56% year-to-date, significantly outperforming broader market indices. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The price target increase follows positive meetings with Advanced Energy Industries management, which KeyBanc described as having "the most positive tone and body language" compared to other companies they met with. This optimism is reflected in broader analyst sentiment, with 10 analysts recently revising their earnings expectations upward.
KeyBanc noted it was not surprised by management’s optimism given recent headlines about datacenter capital expenditure and the "apparent strength and visibility of the DC catalyst."
The firm cited Advanced Energy Industries’ end market positioning and execution as key factors behind its decision to increase estimates and raise the price target.
Advanced Energy Industries specializes in power conversion and control technologies used in various applications including semiconductor equipment, industrial manufacturing, and data centers.
In other recent news, Advanced Energy Industries reported strong financial results for Q2 2025, surpassing earnings expectations with an earnings per share (EPS) of $1.50, compared to the forecasted $1.31. The company’s revenue also exceeded projections, reaching $442 million. Additionally, KeyBanc raised its price target for Advanced Energy Industries to $180.00 from $160.00, maintaining an Overweight rating. The firm highlighted the company’s competitive positioning and its ability to achieve long-term goals as reasons for the increase.
Advanced Energy Industries has also expanded its power converter lineup with the introduction of two high-efficiency quarter-brick modules, the Artesyn NDQ1300 and NDQ1600, designed for 48 V to 12 V power conversion applications. These modules, operating with peak efficiencies of up to 98%, are intended for high-end information and communication technology equipment, including AI servers and networking systems. Furthermore, the company plans to showcase its next-generation fiber optic thermometry converter, the M-1200, at SEMICON West 2025. This new device offers enhanced accuracy and a broader temperature measurement range, according to a company press release.
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