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Stock impact report

AES Corp (AES) Has a Buyout Offer on the Table; Is This Why Hedge Funds Still Like It? [Yahoo! Finance]

The AES Corporation (AES) 
Last the aes corporation earnings: 2/28 06:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
Eade downgraded The AES Corporation (NYSE:AES) from Buy to Hold, citing the company's pending acquisition agreement with a consortium of investors. This consortium is led by Global Infrastructure Partners, which intends to absorb the company at $15 per share. AES Corp (AES) Has a Buyout Offer on the Table; Is This Why Hedge Funds Still Like It? Photo by Jason Blackeye on Unsplash Eade clarified that the downgrade is not a negative view on AES's business, rather, he is only acknowledging that with a buyout price locked in at $15, there is limited room for the stock to move higher. As such, a Buy rating no longer makes sense from a return standpoint. He noted that the 6% gap between the current stock price and the offer price reflects the time value of money and possibly minor uncertainty over the timing of closing. Put simply, Eade conceded that the deal is not risk-free, even if the risks appear small. The analyst noted that the transaction has been unanimously approved by AES Show less Read more
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