American Electric Power Finalizes $2.82 Billion Partnership

American Electric Power ( (AEP) ) has provided an update.

On June 5, 2025, American Electric Power (AEP) finalized a strategic partnership with KKR and PSP Investments, resulting in a $2.82 billion investment for a 19.9% equity interest in AEP’s Ohio and Indiana Michigan transmission companies. This transaction, initially announced in January 2025, supports AEP’s five-year, $54 billion capital plan and is expected to facilitate infrastructure development to meet the growing energy demand in its service territories. The partnership underscores AEP’s leadership in the transmission sector and aims to enhance grid reliability and service to its customers.

The most recent analyst rating on (AEP) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on American Electric Power stock, see the AEP Stock Forecast page.

Spark’s Take on AEP Stock

According to Spark, TipRanks’ AI Analyst, AEP is a Outperform.

AEP’s overall score reflects a strong earnings call with growth opportunities and strategic successes, despite technical indicators showing mixed signals. The company’s financial performance is solid, with strengths in revenue growth and operational efficiency, but the balance sheet shows high leverage typical for the industry. Valuation metrics are fair, with an attractive dividend yield for investors.

To see Spark’s full report on AEP stock, click here.

More about American Electric Power

American Electric Power (AEP) is a major player in the energy sector, operating the largest electric transmission system in the United States with 40,000 line miles and more than 225,000 miles of distribution lines. It serves 5.6 million customers across 11 states and is one of the largest electricity producers in the nation with a diverse generating capacity of approximately 29,000 megawatts. AEP is focused on enhancing service reliability and supporting community growth through a $54 billion investment plan from 2025 to 2029.

Average Trading Volume: 4,091,134

Technical Sentiment Signal: Buy

Current Market Cap: $54.38B

For an in-depth examination of AEP stock, go to TipRanks’ Stock Analysis page.