American Electric Power is one of the largest electric utilities in the United States, providing energy to millions of customers across several states
The company generates, transmits, and distributes electricity, primarily through a diverse mix of coal, natural gas, nuclear, and renewable energy sources. In addition to delivering reliable power, AEP is focused on enhancing grid infrastructure, investing in cleaner energy technologies, and promoting sustainability initiatives. Through its various subsidiaries, the company also engages in energy marketing and trading, helping to optimize energy resources and support the broader energy market.
Wall Street climbed on Thursday, even as the Producer Price Index (PPI) sharply exceeded estimates in January, reigniting concerns over persistent inflationary pressures.
AEP reports Q4 revenue of $4.70B, missing consensus of $4.88B. Total energy distribution & commercial load rose. FY25 adjusted EPS reaffirmed at $5.75-$5.95.
AI's impact on electricity demand is uncertain with the emergence of DeepSeek, causing confusion among investors and leading to a sell-off in power stocks. Less sensitive ETFs include XLU, RSPU, and GRID.
This comes days after Evercore analysts upgraded their price target on the stock to $102 from $96, underlining tailwinds such as rising electricity demand and moderating inflation.
Retail sentiment on Stocktwits flipped to bullish as American Electric rallied on analyst confidence post-Transcos deal and Trevor Mihalik's appointment as CFO.
Bank of America Securities analyst Julien Dumoulin-Smith upgraded American Electric Power to a Buy rating and raised the price target to $104, up from $98. The upgrade follows AEP's sale of a 19.9% stake in transmission assets for $2.8 billion and the appointment of Trevor Mihalik as CFO.
American Electric Power has entered into a $2.82 billion deal with KKR and PSP Investments with respece to a 19.9% stake in its Ohio and Indiana & Michigan Transmission Companies.
