Analysts Lift American Electric Power Targets to $133, $141 and $150
Morgan Stanley raised American Electric Power’s price target to $133 from $125 while maintaining its Overweight rating, citing an improved regulated utility outlook and data center pipeline affordability concerns. TD Cowen and Jefferies raised targets to $141 and $150 on forecasts of capital and demand surging to 56 GW.
1. Morgan Stanley Rating Update
On February 20, Morgan Stanley maintained its Overweight rating on American Electric Power while raising the price target to $133 from $125, citing improved regulated utility fundamentals and balanced considerations around data center pipeline affordability and political factors.
2. TD Cowen Upgrade
TD Cowen held its Buy rating on American Electric Power and boosted its price objective to $141 from $137, highlighting a strong pipeline of capital deployment opportunities and modest gains in earned returns on equity across its operational footprint.
3. Jefferies Price Objective Increase
Jefferies reaffirmed its Buy rating and lifted its price target to $150 from $137, noting contracted demand growth to 56 gigawatts and a significant concentration of 36 gigawatts in the ERCOT market.
4. Company Growth Drivers
American Electric Power operates across four segments—vertically integrated utilities, transmission and distribution, transmission holdings and generation and marketing—with growth supported by regulated rate-base expansion, transmission network upgrades and rising power demand from data centers.