Multiple US Stocks Underperform Amid Mixed Market Gains

Jefferies has downgraded AES Corp from Hold to Underperform and lowered its price target to $9, citing a high valuation multiple, anticipated slowing growth in its renewable energy portfolio by 2027, and credit rating uncertainties. Despite the downgrade, the stock's average analyst price target remains higher at $13.93, with some projections suggesting significant upside potential based on historical valuation and business performance. AES's recent financials show a decline in adjusted EBITDA and EPS for Q1 2025 compared to the previous year. While the broader market saw gains, several stocks including APA Corp and Aptiv PLC underperformed, with APA experiencing a fourth consecutive day of losses and Aptiv trading significantly below its 52-week high. These mixed performances highlight sector-specific challenges amid generally favorable market conditions. The downgrade of AES stands out as a key development amid these market dynamics.