Advanced Energy (AEIS – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Joseph Quatrochi from Wells Fargo maintained a Hold rating on the stock and has a $110.00 price target.
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Joseph Quatrochi has given his Hold rating due to a combination of factors impacting Advanced Energy’s financial outlook. Despite the company delivering strong results in the fourth quarter of 2024 and a slightly positive guidance for the first quarter of 2025, the revenue growth forecast for 2025 is expected to be only in the high-single-digit percentage range, which is lower than previous street estimates.
Moreover, while the demand in the data center sector driven by AI remains robust, and new product launches in the semiconductor segment are anticipated to drive performance in the latter half of 2025, there are concerns about inventory de-stocking in the industrial and medical sectors affecting growth. Additionally, gross margin improvements are constrained by lower volumes and upcoming manufacturing site closures. These mixed signals have led to a more cautious outlook, justifying the Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $118.00 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.