Nov. 14 at 6:51 PM
Citi reaffirmed its Buy rating on Advanced Energy and sharply raised its price target from
$167 to
$255. The company posted strong September-quarter results driven by rapid momentum in its Data Center business, which is on track to more than double revenue in 2025 and grow another 25–30% in 2026. This expansion is supported by robust hyperscaler spending and an increasing number of design wins.
Advanced Energy is also developing high-voltage DC solutions, including 800V technology, with volume production expected in 2027–2028. While semiconductor-equipment revenue may fluctuate near term, AEIS expects a rebound starting in the second half of next year. Citi lifted its 2025/2026 EPS forecasts to
$6.22 and
$8.17, applying a ~31× multiple on 2026 earnings.
The company recently reported Q3 revenue of
$463 million and EPS of
$1.74, beating expectations; KeyBanc subsequently raised its price target to
$240.
$AEIS $C