American Electric Power Company, Inc. (AEP) Sees Positive Outlook from Jefferies

Core Viewpoint - American Electric Power Company, Inc. (AEP) is positioned as a leader in the utility sector, focusing on sustainable energy and infrastructure development, with a competitive edge against other major players like Duke Energy and NextEra Energy [1] Financial Performance - AEP reported operating earnings of $1.19 per share for the fourth quarter, exceeding the Zacks Consensus Estimate of $1.15, while full-year operating earnings reached $5.97 per share, showcasing financial strength despite a slight decline from the previous year [3][6] - The company delivered a total shareholder return of 29% for 2025, indicating strong performance within the industry [5] Growth Initiatives - AEP's growth is supported by a substantial $72 billion capital plan and increasing demand for AI-driven data centers, with projections of annual shareholder returns of 10% to 13% through 2030 [4][6] - The company has additional projects valued between $5 billion to $8 billion, reinforcing its strategic focus on growth and innovation [4] Shareholder Returns - AEP has increased its quarterly dividend to $0.95 per share, reflecting its commitment to returning value to shareholders [5] - The company anticipates a long-term earnings growth rate of 7% to 9% from 2026 to 2030, further solidifying its market position [5] Analyst Ratings - Jefferies upgraded AEP to a "Buy" rating on February 20, 2026, raising the price target from $137 to $150, indicating confidence in the company's future prospects [2][6]