As previously reported, BofA analyst Ross Fowler downgraded American Electric (AEP) to Neutral from Buy with a price target of $122, down from $131, primarily on valuation after the stock was among the best performing regulated utilities in 2025. While the firm continues to see strong growth prospects, particularly in Texas, it expects regulatory relationships to take time and sees limited near-term prospects to drive AEP to a material premium with shares now trading at a 4% premium to the group, the analyst tells investors.
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