Advanced Energy Industries (AEIS) PT Raised to $113 at Citi

Citi analyst Atif Malik raised the price target on Advanced Energy Industries (NASDAQ: AEIS) to $113.00 (from $107.00) while maintaining a Buy rating.

The analyst comments "Advanced Energy reported Mar-Q results with sales/EPS lower than the midpoint of company guidance by -6%/-17% on deeper-than-expected inventory correction especially in the Industrial&Medical and Telecom&Networking segments. The company guided Jun-Q sales below Street consensus by -3% but EPS modestly better by 1%. Driven by increased hyperscale AI investments, the company starts to see a surge in orders in Data center computing, which will drive the sequential growth in Jun-Q and the rest of the year. Efficiency and reliability become more important in AI servers as these AI racks consume 3-5x the power of conventional racks. As I&M begins to normalize and Semiconductor gradually improves, the two segments are also expected to grow going into 2H. We lower our FY24/25 EPS estimates by 17c/2c. We lift our TP to $113 from $107 based on 18x P/E to CY25E EPS, up from prior 17x on market multiple expansion. Maintain Buy."

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