Analyst Note| Andrew Bischof, CFA, CPA |
We are reaffirming our $22 per share fair value estimate and stable, no-moat ratings for AES after it reported third-quarter adjusted earnings of $0.63 per share compared with $0.50 in the same year-ago period. Management reaffirmed 2022 earnings guidance of $1.55 to $1.65 per share but said it expects to finish the year at or near the high end of the range. This is in line with our estimate. Management also reaffirmed its 7%-9% annual earnings growth rate target through 2025, which we expect AES to achieve.