Key Stats for AES Stock
- Price Change for $AES stock: 16%
- Current Share Price: $15.37
- 52-Week High: $20
- $AES Stock Price Target: $13.73
What Happened?
Shares of AES Corporation (AES) jumped nearly 17% on Wednesday after reports surfaced that BlackRock’s Global Infrastructure Partners (GIP) is in advanced talks to acquire the utility company.
The Financial Times broke the story, sending AES stock to its highest close in 11 months.
AES carries approximately $29 billion in consolidated debt, and with its market capitalization now sitting at roughly $11 billion after Wednesday’s rally, any transaction would likely value the company at or above $40 billion.
That would make it one of the largest acquisitions ever involving a U.S. power company.
Sources familiar with the discussions say a deal could be announced within weeks, though nothing is guaranteed and talks could still fall apart. Both AES and GIP declined to comment on the reports.
See analysts’ growth forecasts and price targets for AES stock (It’s free!) >>>
What the Market Is Telling Us About AES Stock
The sharp price jump in AES stock reflects investor optimism that private equity sees real value in AES that the public market has been missing.
Power companies are suddenly in high demand as artificial intelligence and data centers drive unprecedented electricity consumption across the country.
AES reported strong second-quarter results in July, beating Wall Street expectations. The company’s renewables division has been experiencing rapid growth, driven by the global shift toward cleaner energy and increasing U.S. power consumption.
During its recent earnings call, management reaffirmed all 2025 guidance targets and highlighted its 56% year-over-year growth in renewables EBITDA.
GIP has a solid track record in the utility sector. BlackRock acquired the infrastructure investment firm for $12.5 billion last year, and GIP is already working on a $6.2 billion take-private deal for another U.S. utility, Allete.
The firm clearly sees opportunity in the power generation space at a time when AI-driven demand is reshaping the industry.
For AES shareholders, the 17% pop suggests the market believes this deal has legs and could close at a premium to where the stock was trading before the news broke.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
