Mizuho Cuts American Electric Power (NASDAQ:AEP) Price Target to $135.00

Key Points

• Mizuho lowered American Electric Power’s price target to $135 from $141 while maintaining a “neutral” rating, implying approximately 4.8% upside. Despite the cut, analysts’ consensus remains “Moderate Buy” with a $141.43 average target.
• AEP reported quarterly revenue of $5.45 billion, up 7% year over year and above estimates, but EPS of $1.36 missed the $1.48 consensus. The company raised its 2026 operating EPS guidance to $6.25–$6.55, supported by expected electricity-demand growth from data centers and AI infrastructure.
• Shares rose 0.8% to $128.77, while institutional investors continued to hold a substantial 75.24% stake. AEP’s planned infrastructure investments and expanding load-growth opportunities provide potential upside, though its valuation and recent earnings miss remain risks.

American Electric Power (NASDAQ:AEP - Get Free Report) had its price objective dropped by stock analysts at Mizuho from $141.00 to $135.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Mizuho's price objective indicates a potential upside of 4.84% from the stock's current price.

Several other brokerages have also commented on AEP. LADENBURG THALM/SH SH dropped their price target on shares of American Electric Power from $148.00 to $143.00 and set a "buy" rating on the stock in a research note on Thursday, June 18th. Seaport Research Partners upgraded shares of American Electric Power from a "neutral" rating to a "buy" rating and set a $145.00 price objective for the company in a research report on Monday, April 20th. Jefferies Financial Group upped their target price 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. Scotiabank increased their target price on shares of American Electric Power from $131.00 to $140.00 and gave the company a "sector perform" rating in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. cut their price target on shares of American Electric Power from $141.00 to $140.00 and set a "neutral" rating on the stock 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $141.43.

American Electric Power Stock Up 0.8%

NASDAQ AEP traded up $0.99 during trading on Friday, reaching $128.77. 2,390,829 shares of the company's stock were exchanged, compared to its average volume of 4,054,882. The company has a 50 day moving average price of $131.87 and a two-hundred day moving average price of $129.77. The stock has a market cap of $70.06 billion, a P/E ratio of 18.91, a price-to-earnings-growth ratio of 2.32 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. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.39 and a current ratio of 0.53.

American Electric Power (NASDAQ:AEP - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. The business had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.34 billion. During the same quarter in the previous year, the company posted $1.43 EPS. The company's revenue 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, equities research analysts anticipate that American Electric Power will post 6.35 EPS for the current fiscal year.

Institutional Trading of American Electric Power

Several institutional investors and hedge funds have recently bought and sold shares of the business. Activest Wealth Management increased its stake in American Electric Power by 72.2% in the fourth quarter. Activest Wealth Management now owns 217 shares of the company's stock valued at $25,000 after purchasing an additional 91 shares during the period. Optima Capital LLC acquired a new stake in shares of American Electric Power during the fourth quarter worth about $26,000. Rakuten Securities Inc. grew its holdings in shares of American Electric Power by 7,300.0% during the fourth quarter. Rakuten Securities Inc. now owns 222 shares of the company's stock worth $26,000 after buying an additional 219 shares during the last quarter. Costello Asset Management INC grew its holdings in shares of American Electric Power by 100.0% during the first quarter. Costello Asset Management INC now owns 200 shares of the company's stock worth $26,000 after buying an additional 100 shares during the last quarter. Finally, Legacy Wealth Managment LLC ID increased its position in American Electric Power by 200.0% in the 4th quarter. Legacy Wealth Managment LLC ID now owns 231 shares of the company's stock valued at $27,000 after acquiring an additional 154 shares during the period. Hedge funds and other institutional investors own 75.24% of the company's stock.

Trending Headlines about American Electric Power

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Raised 2026 guidance: AEP lifted its full-year operating earnings outlook to $6.25–$6.55 per share, broadly in line with the $6.35 analyst consensus. The higher forecast reflects stronger electricity demand from data centers, artificial-intelligence infrastructure and other large customers. Reuters article
• Positive Sentiment: Large load-growth opportunity: The company expanded contracted and expected new load additions to approximately 69 gigawatts through 2030. AEP also highlighted a $78 billion capital plan, approximately 13 GW of secured gas-fired turbine capacity and as much as 10 GW under evaluation to support rising demand. Zacks article
• Positive Sentiment: Revenue growth and potential cost benefits: Second-quarter revenue rose 7% year over year to $5.45 billion, exceeding estimates. Management expects load growth to generate up to $16 billion in cost offsets and federal financing support to provide approximately $1.4 billion in customer savings, which could improve affordability and strengthen demand. AEP earnings release
• Neutral Sentiment: Analysts and commentary remain constructive on AEP’s exposure to AI-related power demand and its infrastructure investments, although the stock’s roughly 20-times forward price-to-earnings valuation leaves less room for execution disappointments. Seeking Alpha article
• Negative Sentiment: Quarterly earnings missed expectations: Second-quarter operating EPS was $1.36, below the $1.48–$1.49 consensus and down from $1.43 a year earlier. Tax timing and the impact of a prior transaction weighed on results; GAAP EPS fell to $1.31 from $2.29 in the prior-year quarter. Zacks earnings article

American Electric Power Company Profile

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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