In a report released today, Ross Fowler from Bank of America Securities maintained a Buy rating on American Electric Power, with a price target of $114.00.
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Ross Fowler has given his Buy rating due to a combination of factors that highlight American Electric Power’s promising growth prospects and strategic initiatives. The company is poised to benefit from significant opportunities in the Midwest datacenter development and Texas transmission system investments, which are expected to drive capital and rate base growth. Despite conservative management guidance on long-term EPS growth, Fowler sees potential for upward pressure on rate base growth, reinforcing confidence in AEP’s future performance.
Additionally, Fowler acknowledges the challenges AEP faces in regulatory execution, particularly in states like West Virginia and Kentucky. However, he remains optimistic about the company’s ability to manage these headwinds, especially given the relatively small exposure and conservative planning. The transition to a forward-looking test year construct in Ohio is viewed favorably, and potential earnings pressures are expected to be manageable. Furthermore, the robust datacenter growth across AEP’s service territory, supported by substantial contracting activity, adds to the positive outlook, underpinning the Buy rating.
According to TipRanks, Fowler is a 4-star analyst with an average return of 5.5% and a 59.38% success rate. Fowler covers the Utilities sector, focusing on stocks such as Alliant Energy, Eversource Energy, and Sempra Energy.