Raymond James sets AES as a Strong Buy
biz.yahoo.com
MIAMI, June 1 (Reuters) - Raymond James & Associates on Friday started coverage of AES Corp. (NYSE:AES - news) with a strong buy recommendation, saying the independent power producer was well positioned to ride a coming boom in global energy demand.
Analyst Frederick Schultz said AES, with operations in more than two dozen countries, was trading at a discount to rivals but deserved a premium valuation. AES, he predicted, would earn $1.87 a share in 2001 and $2.40 next year, up from $1.46 in 2000.
``We believe management has put in place an earnings catalyst sufficient to hit its five-year 25 percent earnings growth expectations, with additional upside,'' Schultz said in a research report.
``We see the company's geographic and fuel diversities as being timely given the resurgence in political risk in the U.S. power markets.''
Schultz set a 12-month price target of $60 for AES, which was trading at $44.90, off 50 cents, on Friday afternoon on the New York Stock Exchange. |
