AES Corporation: Why The Stock Is Worth $30, With Or Without A Takeover
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Melissa Tucker822 FollowersFollow5ShareSavePlay(6min)CommentsSummaryAES Corporation remains a strong buy, with takeover rumors highlighting undervaluation vs. intrinsic value.AES is executing on a robust growth plan, targeting 5–7% EBITDA growth through 2027, supported by a large project backlog.Despite elevated debt, most is non-recourse and offset by tax attributes; financial position remains comfortable.I estimate fair value at $30 per share—over 100% upside—if 2027 targets are met, with further growth potential beyond.Justin Paget/DigitalVision via Getty Images I have covered the AES Corporation (AES) before, where I outlined the investment thesis in detail and explained why I considered it a strong buy. The company has faced takeover rumorsThis article was written byMelissa Tucker822 FollowersFollowWith a professional background spanning multiple industries, from logistics, construction to retail, I bring a diverse perspective to investing. My international education and career experiences have provided me with a global outlook and the ability to analyze market dynamics from different cultural and economic perspectives. I have been actively investing for over a decade, honing a strategy that focuses on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex. My interest in cyclical sectors stems from their potential for significant returns during periods of economic recovery and growth. However, I also recognize the importance of balancing risk, which is why I incorporate fixed-income investments (long or short).Analyst’s Disclosure:I/we have a beneficial long position in the shares of AES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.