American Electric Power (AEP) Draws Focus as Barclays Refreshes Utilities Models

Core Viewpoint - American Electric Power Company, Inc. (AEP) is recognized as a strong investment option within the utility sector, particularly due to its significant grid modernization efforts and robust capital plans [2][3][4]. Group 1: Investment Ratings and Price Targets - Barclays has raised its price target for AEP from $117 to $121 while maintaining an Equal Weight rating, reflecting a positive outlook ahead of the fourth-quarter earnings [2]. Group 2: Company Initiatives and Growth Drivers - AEP is undertaking one of the largest grid modernization programs in the U.S., focusing on expanding transmission capacity and enhancing reliability, driven by increasing demand from electrification and data centers [3]. - The company's five-year capital plan amounts to $72 billion, which includes commitments for approximately 20 gigawatts of additional power by 2030, fueled by data centers, manufacturing reshoring, and broader economic development [4]. Group 3: Financial Metrics - AEP offers a dividend yield of approximately 3.26%, making it an attractive option for income-focused investors [4].