AES Corp. update should relieve key investor concerns, says Morgan Stanley

Morgan Stanley analyst David Arcaro says AES Corp. (AES) provided several “important updates” with Q4 results that should relieve some “key investor concern” as the firm argues that management issued “a thoughtful, credible plan to manage a challenging set of near-term circumstances.” Dividends stay intact, equity needs have been eliminated, and there is lower risk to the growth plan, which all came alongside $300M in new cost savings, which the firm calls “a positive surprise.” AES pointed to flattish 2025 EBITDA, as expected, but 2026 should sees “a strong step change in growth,” adds the analyst, who has an Overweight rating and $23 price target on AES shares.