AES Stock News

Reports of a potential acquisition helped shares of a utility company power higher, while an agricultural sciences firm faced pressure after it announced a plan to separate into two independent entities.

AES (AES) shares jumped 16% Wednesday afternoon following a report the renewable energy provider is in talks to be acquired by BlackRock's (BLK) Global Infrastructure Partners (GIP).

The S&P 500, Dow, and Nasdaq were little changed Wednesday afternoon, as a federal government shutdown took effect.

The AES Corporation (AES 15.65%) stock surged Wednesday morning on reports a unit of private equity powerhouse BlackRock (BLK -1.92%) intends to acquire the electricity utility -- and pay $38 billion for the privilege.

Shares in U.S. utility AES Corp. surged more than 12% in premarket trading Wednesday after reports that BlackRock-owned Global Infrastructure Partners (GIP) is preparing a takeover bid worth about $38 billion. If completed, the transaction would rank among the largest infrastructure acquisitions in history.

The utility company has brokered deals with Big Tech companies like Microsoft, Alphabet, and Meta Platforms in recent years.

AES Corporation remains a strong buy, with over 100% upside potential with my fair value estimate of $26 per share. AES's growth is driven by a robust renewables pipeline, strong data center demand, and proactive risk management in US policy and supply chain. AES maintains a comfortable financial position despite high debt, with most debt non-recourse and significant cash reserves.

Highlighting 10 S&P-rated companies with 4-7% yields, focusing on dividend growth, credit quality, and undervaluation. Pfizer, Alexandria RE, NNN REIT, AES Corp, and Bristol Myers are identified as undervalued winners and recommended as buys for income-focused investors.