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

AESI +3.36%

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.

Photo by Jeff W on Unsplash

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.

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