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Advanced Energy initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Joe Quatrochi initiated coverage of Advanced Energy Industries with an Equal Weight rating and $100 price target. Trading in line with historical multiples, the shares offer limited upside, the analyst tells investors in a research note. The firm says 2024 consensus estimates already reflect Advanced Energy’s revenue upside relative to the current demand visibility as well as a “slightly too aggressive” gross margin trajectory. Recovery of semiconductor equipment revenue is well expected, and investors should question softening industrials demand and difficult comps into 2024, contends Wells.

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