25.4% Below Target

The consensus Wall Street price target for AES is $18.33, representing 25.4% upside from the current price of $14.62. With 21 analysts covering the stock, this strong upside suggests significant value not yet reflected in today's share price.

AES has a consensus rating of "Hold" based on 21 Wall Street analysts. The rating breakdown is mixed, with 12 Hold ratings making up the largest segment. The consensus 12-month price target of $18.33 implies 25.4% upside from current levels.

With a forward P/E of 6.2612x, AES trades at a relatively low valuation. The consensus target of $18.33 implies 25.4% appreciation, suggesting meaningful undervaluation.

The most bullish Wall Street analyst has a price target of $23 for AES, while the most conservative target is $16. The consensus of $18.33 represents the median expectation. Our quantitative valuation model projects a bull case target of $24 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

AES is well covered by analysts, with 21 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 9 have Buy ratings, 12 recommend Hold, and 0 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month AES stock forecast based on 21 Wall Street analysts shows a consensus price target of $18.33, with estimates ranging from $16 (bear case) to $23 (bull case). The median consensus rating is "Hold". Our proprietary valuation model produces a base case fair value of $18, with bear/bull scenarios of $11/$24.

Our quantitative valuation model calculates AES's fair value at $18 (base case), with a bear case of $11 and bull case of $24. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 43/100.

AES trades at a forward P/E ratio of 6.3x based on next-twelve-months earnings estimates compared to a trailing P/E of 11.6x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are very optimistic on AES, with a "Hold" consensus rating and $18.33 price target (25.4% upside). 9 of 21 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

AES analyst price targets range from $16 to $23, a 38% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $18.33 consensus represents the middle ground. Our model's $11-$24 range provides an independent fundamental perspective.