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Investing.com - Barclays has reiterated an Overweight rating and $14.00 price target on AES Corp. (NYSE:AES), currently trading at $15.34, as rumors swirl about a potential acquisition by BlackRock-owned Global Infrastructure Partners (GIP). According to InvestingPro data, AES has shown strong momentum with a 9.76% return over the past six months, though current analysis suggests the stock is slightly overvalued at these levels.
According to Financial Times reporting cited by Barclays, GIP is nearing a $38 billion deal to acquire AES, which would include assuming $29 billion in debt and paying $9.4 billion for the company’s equity market capitalization. The Financial Times indicated that while talks are at an advanced stage, they could still fail to yield a deal. InvestingPro data shows AES currently operates with total debt of $30.9 billion and a debt-to-equity ratio of 9.17, confirming the significant leverage position.
Barclays notes some discrepancy in the debt calculations, estimating AES’s consolidated net debt at $25 billion for 2025, suggesting the difference might be due to varying views on cash balance. Based on the reported $38 billion enterprise value and Barclays’ debt estimate, the firm calculates an implied equity valuation of approximately $13 billion.
This valuation would translate to roughly $18 per share based on Barclays’ estimate of 713 million shares outstanding in 2025, which exceeds the firm’s current $14 price target. For context, AES stock was trading at 5.6 times Bloomberg consensus P/E on a 2027 basis and 10.6 times consensus EV/EBITDA on a 2026 basis as of September 30.
The potential deal follows earlier reporting from Bloomberg in July that AES was exploring options including a sale amid interest from major private equity firms and infrastructure investors, after the company’s shares lost approximately half their value over the previous two years. Despite recent challenges, InvestingPro analysis shows AES maintains a 5.35% dividend yield and has raised its dividend for 13 consecutive years. Analysts remain optimistic, with price targets ranging from $5 to $23 per share. Get access to 10+ additional exclusive ProTips and comprehensive financial analysis for AES through InvestingPro’s detailed research reports.
In other recent news, AES Corporation reported its second-quarter earnings for 2025, showing mixed results. The company exceeded expectations with an adjusted earnings per share (EPS) of $0.51, compared to the anticipated $0.47. However, AES’s revenue for the quarter was $2.86 billion, falling short of the expected $3.1 billion. In another development, BlackRock’s Global Infrastructure Partners LP is in advanced talks to acquire AES Corp. Discussions are reportedly nearing a $38 billion agreement, though the deal could still face delays or collapse. This potential acquisition has been a significant focus, with reports indicating that negotiations are at an advanced stage. These recent developments have captured the attention of investors and analysts alike.
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