These brokerage firms remain bullish over the next 12-18 months due to continued strong pipeline of growth projects, continued easing of the capital markets and regained investor confidence with continued strong quarters. Additionally, the firms note that the company’s expense controls are in place, and despite a fairly heavy construction program, cash flow continues to grow steadily. Other positives include the company's excellent record of operating performance over the last two years and its growing international presence in the global power industry.

The firms’ optimism on the stock centers around the continued strength exhibited in the global economy (and specifically emerging markets), potential asset sales, recognition of 2010/2011 earnings step-up related to new project contributions. Furthermore, the firms believe that AES remains less sensitive to commodity prices relative to other domestic peers, due to its global diversification, contract generation and regulated utilities margin mix. The firms also view the company’s deleveraging at the subsidiary/project level through debt amortization and restricted cash balances, along with large existing cash balance as factors that differentiate AES form its peers.

Finally, the firms believe that the company’s strategy of divesting unprofitable non-core assets bodes well for the company. Overall, they believe that AES is committed to optimizing its portfolio of regulated and non-regulated generating assets.