UPDATE: ISI Group Initiates Hold on AES Corporation; Execution Critical

ISI Group initiated its coverage on AES Corporation AES with a Hold rating and a price target of $12.50. ISI Group commented, "AES is a complex story with Utility and Generation operations across 27 countries. While we believe that the company has attractive platforms for growth in its core markets of the US, Chile and Brazil, and that it will eventually meet its 7-9% EPS growth target, it must first contend with more immediate headwinds from a 1) a strengthening US dollar, 2) aggressive leverage 3) the aftermath of the poorly conceived DPL acquisition and 4) an uncertain tax environment." AES Corporation closed at $12.25 on Monday.