Analyst James Thalacker from BMO Capital reiterated a Buy rating on American Electric Power (AEP – Research Report) and keeping the price target at $115.00.
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James Thalacker has given his Buy rating due to a combination of factors that highlight American Electric Power’s promising growth trajectory. The company’s management has expressed strong confidence in integrating an additional $10 billion of transmission and generation investments into their capital plan by the third quarter of 2025. This strategic move is expected to enhance their financial flexibility and stability, supported by favorable legislative and regulatory developments in key states such as Texas, Ohio, Oklahoma, and Kentucky.
Furthermore, AEP’s equity program has been de-risked, providing near-term financial stability and allowing the company to focus on efficiency, accountability, and transparency under its renewed leadership vision. The company’s growth outlook is bolstered by a robust investment program aimed at supply decarbonization and transmission, which is anticipated to support a premium valuation over time. With an improving credit profile, manageable equity needs, and enhanced regulated return on equity, AEP presents a compelling relative value opportunity, making it an attractive investment option.
In another report released on June 18, Morgan Stanley also maintained a Buy rating on the stock with a $113.00 price target.