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Needham & Company Downgrades Advanced Energy Industries (AEIS) to Hold

April 18, 2016 7:28 AM EDT
Get Alerts AEIS Hot Sheet
Price: $101.46 -0.55%

Rating Summary:
    7 Buy, 12 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Needham & Company downgraded Advanced Energy Industries (NASDAQ: AEIS) from Buy to Hold amid the recent rally.

Analyst Y. Edwin Mok commented, "We are downgrading AEIS to Hold from Buy post the stock's 25% appreciation YTD (vs S&P 500 up ~2%). In SemiCap, we continue to see AEIS as well positioned to benefit from the increased etch and deposition processes around technology inflections, but we believe the recent rally already discounts the earnings upside. In the industrial segment, AEIS has not delivered much growth over the last 7 quarters, and we believe it will need to acquire additional businesses to bolster the segment, which would most likely be dilutive to margins. With AEIS trading above our prior PT of $34, we believe AEIS is fully valued at a CY17E P/E (w/ SC) of 14x (or ex-cash P/E at 12x). We would wait for a pullback and/or signs of greater earnings growth before getting back into the name."

For an analyst ratings summary and ratings history on Advanced Energy Industries click here. For more ratings news on Advanced Energy Industries click here.

Shares of Advanced Energy Industries closed at $35.26 yesterday.



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