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On Tuesday, Stifel analysts maintained their Buy rating and $130.00 price target for Advanced Energy Industries (NASDAQ:AEIS), expressing confidence in the company’s market position. The analysts highlighted Advanced Energy’s potential to achieve share gains in the oxide etch and NAND sectors, which could contribute to the company’s growth. According to InvestingPro data, analyst targets for AEIS range from $92 to $145, with the stock currently trading at $112.83.
The firm acknowledged some concerns regarding the Industrial & Medical (TASE:PMCN) division of Advanced Energy, which represents approximately low-20% of the company’s sales. They anticipate that the bottoming process in this segment might continue through the first half of the year.
Despite this, Stifel analysts are optimistic about the company’s prospects in the datacenter compute business, which accounts for a high-teens percentage of sales. They expect that robust capital expenditure budgets from hyperscalers for the year 2025 will likely lead to an acceleration in this area for Advanced Energy in the current year. With a market capitalization of $4.25 billion, the company trades at a relatively high P/E ratio of 98.25, suggesting investors are pricing in significant growth expectations.
Advanced Energy Industries specializes in providing power conversion, measurement, and control solutions for a variety of applications, including industrial and medical technology sectors. The company also serves the semiconductor and datacenter computing industries, which are areas of strategic importance for its growth.
The Stifel analysts’ reiteration of the Buy rating and the $130.00 price target suggests a positive outlook for Advanced Energy’s stock performance. This endorsement comes as the company prepares to navigate through the challenges and opportunities presented by the current market environment.
In other recent news, Advanced Energy Industries has been a focal point of multiple analyst upgrades. Benchmark analyst Mark Miller increased his price target for the company to $135, citing a positive outlook for the company driven by a surge in AI-related data center sales and a recovery in other markets. He also projected a significant increase in Advanced Energy’s non-GAAP earnings, expecting a 57% year-over-year growth to $5.63 per diluted share for the fiscal year 2025.
Needham analysts upgraded Advanced Energy’s stock from a Hold to a Buy status, setting a new price target of $145.00. They anticipate a favorable setup for 2025, with a potential recovery in the Industrial & Medical market and stronger growth in the semiconductor sector. Advanced Energy’s cost-saving measures are expected to significantly improve gross margins.
Citi analyst Atif Malik upgraded Advanced Energy from a Neutral to a Buy rating and increased the price target to $138. He highlighted the company’s strong position in the Semiconductor Equipment market and substantial growth in Data Center Computing. Baird, a financial services firm, upgraded the price target for Advanced Energy Industries from $124.00 to $134.00, retaining its Outperform rating on the stock. They anticipate the company to benefit from a recovery in capital expenditures in both the Semiconductor and Industrial sectors.
These recent developments highlight the positive sentiment among analysts towards Advanced Energy Industries, based on expected market recovery and the company’s strategic initiatives.
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