Citi reiterates buy rating on Advanced Energy Industries

Citi analyst Scott Gr reiterated a Buy rating and a $17.00 price target on Advanced Energy Industries (NASDAQ: AEIS).

The analyst noted that Atlas had entered into two cost reimbursement agreements with a frontier AI lab. The first agreement covers reimbursement for balance-of-plant equipment, encompassing 328 megawatts of capacity ordered under a General Framework Agreement for 2027 deliveries, along with approximately 120 megawatts expected to be available by year-end, totaling roughly 450 megawatts.

The second agreement relates to a separate data center, with the 283 megawatts included representing initial capacity only, with Advanced Energy Industries aiming to place additional megawatts on the project. The analyst indicated the two projects could together approach 1 gigawatt of combined capacity.

The analyst also noted the company does not plan to supplement the cost agreements with an equity raise or convertible issuance, but may use bridge financing before transferring assets into a special purpose vehicle to secure project financing.

Shares of Advanced Energy Industries closed at $279.68.

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