On Wednesday, Baird upgraded the stock price target for Advanced Energy Industries (NASDAQ:AEIS), a company specializing in power conversion solutions, from $124.00 to $134.00. The firm retained its Outperform rating on the stock. The adjustment comes with a positive outlook on the company's prospects, citing several factors that could contribute to its growth.
The analyst at Baird highlighted Advanced Energy Industries as a top pick for 2025, anticipating the company to benefit from a recovery in capital expenditures in both the Semiconductor and Industrial sectors. The firm expects this recovery to gain momentum as 2025 progresses, particularly in the second half of the year and beyond.
In addition to the cyclical upturn, Baird notes that Advanced Energy Industries is undertaking internal operational margin expansion initiatives. These efforts, along with product innovation and market share gains, are expected to accelerate the company's recovery pace. The firm also points to Advanced Energy's selective positioning in the Data Center market as a supplementary factor to the company's growth trajectory in 2025.
The financial services firm projects a significant earnings per share (EPS) growth for Advanced Energy Industries, estimating an increase of approximately 75% over the next two years. This projection is supported by the company's long-term targets for 2030, which provide a framework for sustained growth, including a 25% compound annual growth rate (CAGR) in EPS.
The raised price target to $134 reflects Baird's confidence in Advanced Energy Industries' future performance and its ability to capitalize on the anticipated market recovery and internal strategies for expansion and innovation.
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