Advanced Energy (AEIS – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Duksan Jang from Bank of America Securities reiterated a Buy rating on the stock and has a $140.00 price target.
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Duksan Jang has given his Buy rating due to a combination of factors that highlight Advanced Energy’s promising growth trajectory. The company has demonstrated consistent sales growth and gross margin expansion, which are expected to lead to favorable operating leverage. Despite a modestly weaker short-term outlook, the demand from the Semis and Data Center segments remains robust due to AI infrastructure deployment.
Furthermore, Advanced Energy’s strategic plans for gross margin expansion are progressing well, aiming to reach over 40% by the second half of 2026. This is supported by expected volume increases, manufacturing consolidation, and a favorable product mix, which could potentially allow for an earlier achievement. The projected earnings per share growth of 25% CAGR over the next three years significantly outpaces that of its peers. Despite some risks related to market recovery and margin execution, the overall outlook remains positive, leading to a reiteration of the Buy rating with a price objective of $140.
In another report released today, Needham also reiterated a Buy rating on the stock with a $145.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AEIS in relation to earlier this year.