Do Wall Street Analysts Like American Electric Power Stock?

Core Viewpoint - American Electric Power Company, Inc. (AEP) is a leading U.S. electric utility with a market cap of $64.1 billion, serving approximately 5.6 million customers through a vast network of generation and distribution assets [1]. Group 1: Stock Performance - AEP shares have outperformed the broader market over the past 52 weeks, rising 22.6%, compared to a 14% increase in the S&P 500 Index [2]. - Year-to-date, AEP shares are up 4.1%, while the S&P 500 has seen only a marginal rise [2]. - AEP has also surpassed the State Street Utilities Select Sector SPDR ETF's (XLU) return of 11% over the same period [3]. Group 2: Financial Performance and Outlook - Despite reporting a weaker-than-expected Q3 2025 adjusted EPS of $1.80, AEP's shares increased by 6.1% following the announcement of a $72 billion five-year capital plan, which includes 28 GW of new customer-backed load and a projected 10% annual rate base growth to $128 billion by 2030 [6]. - AEP has set a long-term operating earnings growth target of 7% - 9% through 2030, with management projecting 2026 operating EPS between $6.15 and $6.45 [6]. - For the fiscal year ending December 2025, analysts expect AEP's adjusted EPS to grow nearly 5% year-over-year to $5.90, with a strong earnings surprise history [7]. Group 3: Analyst Ratings - Among 22 analysts covering AEP, the consensus rating is a "Moderate Buy," consisting of seven "Strong Buy" ratings, one "Moderate Buy," 13 "Holds," and one "Strong Sell" [7]. - Morgan Stanley analyst David Arcaro reaffirmed a "Buy" rating on AEP with a price target of $125 [8].