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The AES Corp AES

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

U.S. Government's Bold Solar Outlook Tops Our Forecast but Positive for AES

Travis Miller Strategist

Analyst Note

| Travis Miller |

We are reaffirming our $25 per share fair value estimate for AES after the U.S. Department of Energy and President Joe Biden announced ambitious long-term solar energy targets. For AES, solar investments are a key part of our 8% average annual EPS growth rate estimate from 2020 to 2025, in line with management's 7%-9% growth target. Increased policy support for solar, including subsidies, could accelerate growth beyond 2025.

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Company Profile

Business Description

AES is a global power company with businesses in 14 countries. It has a portfolio of more than 100 power plants and wind and solar farms. Its current construction program will increase its net generating capacity to over 35 gigawatts. AES also has majority ownership and operates six electric utilities distributing power to 2.4 million customers in the U.S. and El Salvador. AES is one of the world leaders in utility-scale energy storage in its Fluence joint venture with Siemens.

Contact
4300 Wilson Boulevard, 11th Floor
Arlington, VA, 22203
T +1 703 522-1315
Sector Utilities
Industry Utilities - Diversified
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 21,000

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