Wells Fargo lowers Advanced Energy price target on valuation

Wells Fargo has reduced its price target for Advanced Energy Industries shares from $360 to $310. The firm maintains an Overweight rating on the stock, which is trading at $217.19 after a 44% decrease over the past six months. Despite this price drop, InvestingPro analysis indicates the shares are still undervalued. Wells Fargo increased revenue and earnings estimates for the company, citing strong results in the semiconductor and data center segments.

The company now anticipates 2026 revenue of $2.53 billion and earnings per share of $12.49, compared to earlier forecasts of $2.44 billion and $11.11. Wells Fargo also raised its 2027 and 2028 revenue and earnings per share estimates. The lower price target is attributed to a contraction in peer group multiples, specifically 14 times price-to-earnings and 11 times enterprise value-to-EBITDA on 2028 estimates.

Advanced Energy Industries reported stronger-than-expected third-quarter 2026 earnings, with $3.65 per share on $696 million in revenue, surpassing analyst expectations. The company attributed its success to strong demand in the semiconductor and data center markets, raising its full-year revenue growth outlook to approximately 40%.