Analyst Ross Fowler of Bank of America Securities maintained a Buy rating on American Electric Power (AEP – Research Report), retaining the price target of $117.00.
Ross Fowler has given his Buy rating due to a combination of factors including American Electric Power’s strong financial performance and positive future outlook. The company reported first-quarter operating earnings per share (EPS) of $1.54, surpassing both Bank of America and consensus estimates of $1.39. This performance was driven by various factors such as rate relief, favorable weather conditions, and improved returns at regulated utility operations, which aligned with the company’s 2025 guidance assumptions.
Additionally, AEP has reaffirmed its full-year guidance for EPS between $5.75 and $5.95 and anticipates long-term EPS growth of 6% to 8%. The company has also completed a $2.3 billion equity issuance, covering its equity needs through 2029, and maintains a capital expenditure forecast of $54 billion through the same period. Despite a dip in retail load growth this quarter, the company expects strong growth in the coming years, particularly in commercial sales. These factors contribute to a positive outlook for AEP, supporting the Buy rating with a price objective of $117.00.
According to TipRanks, Fowler is a 4-star analyst with an average return of 3.6% and a 59.89% success rate. Fowler covers the Utilities sector, focusing on stocks such as Northwestern, Consolidated Edison, and American Electric Power.
In another report released on April 23, Morgan Stanley also maintained a Buy rating on the stock with a $114.00 price target.