BMO Capital has increased its price target for American Electric Power Company, Inc. (AEP, Financial) from $111 to $115, while maintaining an Outperform rating. This adjustment comes as the company prepares to release its first-quarter results.
The firm notes that American Electric has already met equity requirements for its current five-year plan. Moving forward, attention is expected to shift to several macroeconomic issues, notably tariffs and sales within the industrial sector. Additionally, there are potential implications from the phase-out or repeal of the Inflation Reduction Act (IRA).
Furthermore, BMO Capital highlights a need for updated projections related to Data Center Electrical Service Agreements (DC ESAs) and anticipates progress in the company's capital expenditure plan, which includes $10 billion in potential investments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for American Electric Power Co Inc (AEP, Financial) is $105.60 with a high estimate of $116.00 and a low estimate of $95.00. The average target implies an downside of 1.51% from the current price of $107.21. More detailed estimate data can be found on the American Electric Power Co Inc (AEP) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, American Electric Power Co Inc's (AEP, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Electric Power Co Inc (AEP, Financial) in one year is $100.08, suggesting a downside of 6.65% from the current price of $107.21. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Electric Power Co Inc (AEP) Summary page.
