Piper Sandler Lowers Price Target for Atlas Energy (AESI) as it Expands into Megawatt Market with 240MW Initial Order

Atlas Energy Solutions Inc. (NYSE:AESI) ranks among the 9 hot energy stocks to buy. On November 17, Piper Sandler maintained its Neutral rating for Atlas Energy Solutions Inc. (NYSE:AESI) but reduced its price target from $12 to $10. The shift comes after Atlas Energy announced its entry into the megawatt market with a 240MW initial order.

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By early 2027, Atlas Energy Solutions Inc. (NYSE:AESI) expects deploying around 400MW, including 190MW of Moser assets. The company has estimated a demand opportunity of 2 GW, with 50% of that coming from data centers, 40% from commercial and industrial uses, and 10% from oil and gas.

That said, the company’s core oilfield services segment faces difficulties, which led to a 30% EBITDA miss for the quarter. With earnings per share of -$0.19, Atlas reported a net loss that came in considerably lower than the projected $1.07. The company’s revenue, which came in at $259.6 million against the anticipated $237.1 million, topped forecasts despite this earnings shortfall.

Atlas Energy Solutions Inc. (NYSE:AESI) engages in the production, processing, and sale of mesh and sand used as proppants during the well-completion process in the Permian Basin of West Texas and New Mexico.

While we acknowledge the potential of AESI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AESI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.