Investment Thesis
AES Corporation (AES) delivered an unimpressive quarter with modest decline in its revenue. Looking forward, the company has a rich development pipeline that should increase its power generation capacity significantly. Its cost-saving initiative should also help lift its bottom line. However, the company still has a leveraged balance sheet. The company currently pays a 3.1%-yielding dividend. AES is currently trading at a significantly discount to its peers. We think it shares could trend higher if it can execute its plan to grow its portfolio.
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