Morgan Stanley Reiterates 'Buy' Rating on The AES Corporation (AES), Cites Solid Financial Performance

With a one-year share price decline and significant hedge fund interest, The AES Corporation (NYSE:AES) secures a spot on our list of the 12 Best Stocks to Buy in Falling Markets According to Hedge Funds.

On August 4, 2025, Morgan Stanley analyst David Arcaro reiterated his ‘Buy’ rating on The AES Corporation (NYSE:AES) with a $23 price target, noting the company’s solid financial performance and strategic positioning. AES reported Q2 earnings per share and adjusted EBITDA far above forecasts, and management reaffirmed its 2025 guidance.

The renewables segment’s growth is strong, driven by considerable bookings and a solid backlog, while the U.S.-based supply chain strategy and avoidance of federal land projects improve stability. Positive momentum in the utility business strengthens the company’s growth prospects, boosting investor confidence in The AES Corporation (NYSE:AES)’s ability to deliver consistent performance across both traditional and renewable energy portfolios.

The AES Corporation (NYSE:AES) generates and distributes electricity globally, operating power plants and utilities using coal, gas, hydro, wind, solar, biomass, and renewable energy storage technologies. It is included in our list of the Best Bear Market Stocks.

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