American Electric price target raised to $140 from $131 at Scotiabank

Scotiabank raised the firm’s price target on American Electric (AEP) to $140 from $131 and keeps a Sector Perform rating on the shares. The firm is impressed with the company’s “robust” EPS growth outlook, which managed yet again increased to a “greater than 9% CAGR” thanks to recently-announced incremental capital projects. Following strong outperformance over the past 1/3/6/12 months, Scotita sees shares trading at a more than 10% P/E premium to peers, a level that hasn’t been seen in at least the past decade, if ever.