JPMorgan Lifts AEP Price Target Following Utility Sector Model Update

Group 1: Company Overview - American Electric Power Company, Inc. (NASDAQ:AEP) is one of the largest electric utility companies in the U.S., providing generation, transmission, and distribution services to more than 5 million customers across 11 states [6] Group 2: Financial Performance and Projections - AEP has raised its long-term EPS growth outlook to 7%–9%, up from 6%–8%, reflecting expectations for roughly 28 GW of incremental peak demand by 2030, with about 22 GW expected to come from data centers [4] - The company has increased its five-year capital investment plan to $72 billion and disclosed a sizable backlog, with roughly 190 GW of customers currently waiting to interconnect to its system [4] Group 3: Market Trends and Demand Drivers - Electric demand is accelerating at its fastest pace since the 1960s and 1970s, driven by the rapid expansion of AI infrastructure, which is projected to require a significant increase in power generation [3] - Capacity tied to data center growth is projected to jump from about 45 GW today to more than 130 GW by 2030 [3] Group 4: Strategic Partnerships - AEP announced long-term strategic agreements with Quanta Services to support the execution of its expanded capital plan, including the buildout of high-voltage transmission, while strengthening supply chain reliability and expanding development capabilities [5] Group 5: Analyst Insights - JPMorgan analyst Jeremy Tonet raised AEP's price target to $125 from $121 while maintaining a Neutral rating on the stock, following updates to the firm's models across the North American utilities sector [2]