AES Corp. initiated with a Buy at Jefferies

Jefferies initiated coverage of AES Corp. with a Buy rating and $20 price target. AES, which owns a global portfolio of energy infrastructure assets, is on “a rapid path to have the vast majority of its earnings generated by US renewables and regulated utilities, while exiting coal exposure,” the analyst tells investors. The firm, which views the stock’s underperformance as a sign the market is cautious about ability to execute, calls the stock “a way to gain exposure to US renewables with a quality improvement twist at a discounted price.”