Bank of America analyst Duksan Jang has reduced the price target for Advanced Energy (AEIS, Financial) from $140 to $112 while maintaining a Buy rating on the company's shares. This adjustment reflects the potential impact of tariff-related dynamics affecting the U.S. semiconductor sector.
The analyst expects U.S. chip companies to report better-than-expected first-quarter results, attributing this to an initially cautious outlook and demand improvements due to tariff-related pull-ins. Despite this positive expectation for Q1, there are concerns about future sales impacts due to tariffs.
In scenarios where tariffs moderately affect the market, sales could experience an average decline of 4% to 6%. More severe tariff conditions might lead to sales decreases of 9% and 12% in 2025 and 2026, respectively. Earnings per share (EPS) could also be negatively impacted by 12% to 13% in a modest tariff scenario. These factors have led Bank of America to lower its price targets across its semiconductor coverage, indicating rising uncertainty in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Advanced Energy Industries Inc (AEIS, Financial) is $125.70 with a high estimate of $145.00 and a low estimate of $98.00. The average target implies an upside of 40.97% from the current price of $89.17. More detailed estimate data can be found on the Advanced Energy Industries Inc (AEIS) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Advanced Energy Industries Inc's (AEIS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Advanced Energy Industries Inc (AEIS, Financial) in one year is $96.15, suggesting a upside of 7.83% from the current price of $89.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Advanced Energy Industries Inc (AEIS) Summary page.
