Analyst raises American Electric Power’s price target amid expectations of accelerated capital plans and cost-neutral growth in utilities.
TD Cowen analyst Shelby Tucker increased the price target for American Electric Power (NASDAQ:AEP) to $148 from $141, maintaining a Buy rating. The adjustment follows updates to utility sector models after first-quarter earnings reports, with expectations of incremental growth without added costs.
The firm anticipates utilities will accelerate capital plan increases but warned against over-promising. Scotiabank recently raised its AEP price target to $140 from $131, citing a robust EPS growth outlook exceeding a 9% CAGR. AEP shares now trade at a more than 10% P/E premium to peers, a level unseen in the past decade.
American Electric Power serves over five million retail customers with generation, transmission, and distribution services across its operating utilities.