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Advanced Energy Industries, Inc. (NASDAQ:AEIS) stock soared to an all-time high, reaching a price level of $130.52, representing a remarkable 14% gain in just the past week. According to InvestingPro analysis, the company’s market capitalization now stands at $4.9 billion, with analysts setting price targets as high as $145. This milestone underscores a period of robust performance for the company, which specializes in power conversion solutions used in a variety of high-tech industries. Over the past year, Advanced Energy has witnessed a significant appreciation in its stock value, with a 1-year change showing an impressive 30.73% increase. While trading at a relatively high P/E ratio of 89.5, InvestingPro data reveals 12 additional key insights about AEIS’s valuation and growth prospects, available in the comprehensive Pro Research Report. This surge reflects investor confidence in the company’s growth prospects and its ability to innovate and capture market share in its sector.
In other recent news, Advanced Energy Industries reported strong fourth-quarter 2024 earnings, with earnings per share (EPS) of $1.30, exceeding the forecasted $1.10. The company also reported revenue of $415.4 million, surpassing expectations of $394.1 million. Analysts from Stifel raised their price target for Advanced Energy to $135, maintaining a Buy rating, citing strong performance in the semiconductor capital equipment sector. KeyBanc Capital Markets reiterated an Overweight rating on the stock, maintaining a $130 price target, driven by Advanced Energy’s impressive results and optimistic guidance for the first quarter of 2025.
Despite a 10% year-over-year decline in full-year 2024 revenue, Advanced Energy’s gross margin increased to 38%, the highest in three years, highlighting operational efficiency improvements. The company’s guidance for the first quarter of 2025 projects revenue of $392 million, with expectations of high single-digit growth for the full year. Stifel analysts project a 10% year-over-year increase in 2025 revenue, driven by the data center sector, while KeyBanc anticipates a cyclical recovery and market share gains. Advanced Energy’s strategic focus includes new product launches and factory consolidation, aiming for a 43% gross margin by 2030.
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