AES Agrees 20-Year PPAs with Google in Texas, Morgan Stanley Cuts Target to $23
Morgan Stanley lowered its price target on The AES Corporation to $23 from $24, citing exposure to long-duration contracted assets. On February 24, AES agreed 20-year Power Purchase Agreements to develop co-located energy generation projects with Google in Texas, enhancing long-term revenue visibility.
1. Morgan Stanley Lowers Price Target
On February 20 Morgan Stanley reduced its price target for The AES Corporation to $23 from $24 while maintaining an Overweight rating. The adjustment reflects sector-wide updates across regulated utilities and independent power producers, with analysts highlighting AES’s exposure to long-duration contracted assets and renewable development pipelines.
2. 20-Year PPAs for Google Data Center Projects
On February 24 AES entered into agreements to develop co-located energy generation projects with Google in Wilbarger County, Texas. The company will own and operate the generation assets under 20-year Power Purchase Agreements and provide retail supply and energy management services, strengthening long-term contracted revenue streams.
3. Strategic Implications for AES
These long-term arrangements enhance AES’s revenue visibility and support durable cash flow growth by leveraging its development expertise. The partnership deepens AES’s position in the expanding data center market and underscores its focus on renewable and contracted energy solutions.