American Electric Power (NASDAQ:AEP) Given New $135.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered its price target for American Electric Power from $139 to $135 while maintaining an “overweight” rating, implying 8.73% potential upside from the prior close.
• Analyst sentiment remains positive overall, with 13 Buy ratings and nine Holds producing a “Moderate Buy” consensus and an average price target of $140.19.
• AEP reported quarterly EPS of $1.36, below the $1.48 consensus estimate, although revenue rose 7% year over year to $5.45 billion. The company reaffirmed fiscal 2026 EPS guidance of $6.25–$6.55.

American Electric Power (NASDAQ:AEP - Get Free Report) had its target price lowered by equities researchers at Morgan Stanley from $139.00 to $135.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 8.73% from the stock's previous close.

A number of other equities research analysts have also issued reports on the stock. Citigroup dropped their target price on shares of American Electric Power from $148.00 to $142.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. BMO Capital Markets decreased their price target on shares of American Electric Power from $141.00 to $139.00 and set a "market perform" rating on the stock in a research note on Wednesday, July 22nd. Truist Financial dropped their price objective on shares of American Electric Power from $146.00 to $139.00 and set a "buy" rating for the company in a research note on Monday. Jefferies Financial Group increased their price objective on shares of American Electric Power from $147.00 to $154.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. Finally, TD Cowen raised their target price on shares of American Electric Power from $141.00 to $148.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Thirteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $140.19.

American Electric Power Price Performance

Shares of NASDAQ AEP traded down $1.54 during midday trading on Friday, hitting $124.16. The stock had a trading volume of 957,969 shares, compared to its average volume of 4,012,119. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. The stock has a 50 day simple moving average of $131.18 and a 200-day simple moving average of $130.55. The company has a market capitalization of $67.59 billion, a PE ratio of 21.30, a P/E/G ratio of 2.26 and a beta of 0.52. American Electric Power has a 1 year low of $105.70 and a 1 year high of $140.58.

American Electric Power (NASDAQ:AEP - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The firm had revenue of $5.45 billion for the quarter, compared to analysts' expectations of $5.34 billion. During the same quarter in the previous year, the firm posted $1.43 earnings per share. The firm's revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. On average, sell-side analysts expect that American Electric Power will post 6.37 EPS for the current fiscal year.

Institutional Investors Weigh In On American Electric Power

Hedge funds have recently modified their holdings of the company. Brighton Jones LLC increased its holdings in shares of American Electric Power by 11.5% during the 4th quarter. Brighton Jones LLC now owns 10,601 shares of the company's stock worth $978,000 after buying an additional 1,095 shares during the last quarter. Acadian Asset Management LLC acquired a new position in American Electric Power in the first quarter valued at approximately $320,000. Sivia Capital Partners LLC lifted its holdings in American Electric Power by 149.5% in the second quarter. Sivia Capital Partners LLC now owns 4,891 shares of the company's stock valued at $507,000 after acquiring an additional 2,931 shares during the last quarter. Gamco Investors INC. ET AL grew its position in American Electric Power by 4.4% in the second quarter. Gamco Investors INC. ET AL now owns 2,505 shares of the company's stock worth $260,000 after acquiring an additional 105 shares during the period. Finally, AXA S.A. grew its position in American Electric Power by 95.7% in the second quarter. AXA S.A. now owns 79,111 shares of the company's stock worth $8,209,000 after acquiring an additional 38,684 shares during the period. Hedge funds and other institutional investors own 75.24% of the company's stock.

About American Electric Power

American Electric Power NASDAQ: AEP is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.

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