AES Corporation Monthly Stock Report - December 12, 2025

Company Overview

The AES Corporation, headquartered in Arlington, Virginia, is a diversified utilities company operating across the United States and internationally. Founded in 1981 and formerly known as Applied Energy Services, Inc., AES rebranded in April 2000 to better reflect its operational scope. The company manages a significant generation portfolio of approximately 32,109 megawatts and serves around 2.7 million customers spanning residential, commercial, industrial, and governmental sectors.

Operating in the diversified utilities industry, AES generates and sells electricity through an array of fuel sources and technologies, including coal, gas, hydro, wind, solar, and biomass. By also participating in the wholesale electricity market, AES stands as a key player in an essential sector of the economy, poised for growth amid increasing demand for electricity. With a strong "buy" recommendation, the stock presents a target high price of $24.00, suggesting notable potential for upside movement in the market.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Technical Analysis

The 52-week stock chart for AES Corporation reveals a predominantly bullish trend, starting from lows around $9 in May 2025 and climbing to recent highs of about $14. This notable increase of approximately 55% over the year underscores strong bullish momentum. The stock has consistently exhibited a pattern of higher highs and higher lows, reinforcing investor confidence as it adapts to changing market conditions.

Key Price Levels

• Current Price: $14.045
• 52-Week High: $15.51
• 52-Week Low: $9.46
• Support Level: Approximately $11 (which acted as a floor during multiple retracements)
• Resistance Level: $13 (which was broken previously and has now turned into potential support)

The current trading price indicates a significant upside potential when juxtaposed against the target high price of $24.00 and a mean price target of roughly $15.29. The blue moving average line suggests a positive crossover, thereby supporting the overall bullish sentiment surrounding the stock. Recent consolidation around the $13 to $14 range signifies that this level may serve as the new resistance point.

Momentum Indicators

The ongoing consolidation near the moving average indicates a neutral position, as the stock is not currently overbought or oversold. This places AES in a prime position for a potential breakout, especially if bullish conditions persist. The trendline further validates the consistency in price gains, attracting attention from institutional and retail investors alike.

Financial Performance and Metrics

Key Financial Data

AES Corporation's financial performance reflects strong fundamentals, making it an appealing investment opportunity:

• Total Revenue: Approximately $12.09 billion
• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $3.206 billion
• Shares Outstanding: 712,120,944
• Shorted Shares: 23,091,156
• Short Interest Percentage: Approximately 3.73% of float shares

These metrics indicate AES's solid capability to generate substantial income and exhibit operational efficiency. The relatively low short percentage of float conveys a generally optimistic outlook among investors regarding the company's prospects, as fewer shares are being held short relative to those available for trading.

Valuation Metrics

The company's current stock price of $14.045 is below its target mean price of approximately $15.29. This disparity supports the belief that there is substantial room for growth in the share price. The recommended "buy" stance, underlined by a mean recommendation score of 2.29 based on analyses from 12 investment analysts, further legitimizes the investment thesis for AES Corporation.

Recent News and Developments

Several significant events surrounding AES Corporation are worth noting:

1. AES Indiana Rate Hike Settlement: AES Indiana, a subsidiary of AES Corporation, has sought a settlement regarding a rate hike case submitted to the Indiana Utility Regulatory Commission (IURC). Should the settlement be approved, it will reduce the proposed rate hike affecting over 500,000 customers and prevent another base rate increase request until January 2030. The ruling is anticipated in Spring 2026.

2. BlackRock Acquisition Interest: Reports have surfaced regarding BlackRock's Global Infrastructure Partners (GIP) nearing a highly anticipated $38 billion acquisition of AES Corporation, inclusive of debt. This potential acquisition reflects growing interest in the utility sector, particularly as demand for electricity spikes due to artificial intelligence and data centers. Negotiations have reached an advanced stage, although not yet finalized.

Both news items highlight strategic moves that demonstrate AES Corporation's resilience and adaptability in a competitive sector.

Market Sentiment and Analyst Recommendations

The overall market sentiment surrounding AES Corporation is reinforcing a bullish outlook:

• Current Stock Price: $14.045
• Recommended Price Targets:
• Target High Price: $24.00
• Target Low Price: $8.50
• Mean Price Target: Approximately $15.29
• Median Price: Approximately $15.50

With a consensus "buy" recommendation based on multiple analyses and bullish sentiment in the market, it becomes clear that investors view AES Corporation favorably. The current trading environment combined with the potential impact of upcoming regulatory decisions and acquisition talks suggests that while there are risks, the opportunities outweigh them in the near to medium term.

Conclusion

In summary, AES Corporation is positioned strongly within the diversified utilities sector, showcasing impressive financial metrics and solid market sentiment. The current stock price presents an attractive entry point, reflecting significant upside potential relative to future price targets. Investors should remain watchful for developments in regulatory reviews and potential mergers, which could further catalyze stock performance. While opportunities are abundant, stakeholders should also consider the inherent volatility and challenges present in the utilities market. Overall, AES Corporation represents a solid investment opportunity for those looking to capitalize on a lucrative segment of the economy in an era of increasing energy demands.