Morgan Stanley Boosts AEP PT, Highlights Constructive Utility Sector Outlook

Group 1: Company Overview - American Electric Power Company, Inc. (NASDAQ:AEP) operates as a public utility holding company, managing generation, transmission, and distribution services for over five million customers across multiple U.S. states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia [4] Group 2: Financial Performance and Outlook - For Q4 2025, American Electric Power maintained its 2026 operating EPS guidance of $6.15 to $6.45 and expects earnings to grow 7% to 9% annually from 2026 through 2030 [3] - The company has a $72 billion five-year capital plan based on an earlier estimate of 28 gigawatts of incremental demand, with $5 billion to $8 billion allocated for confirmed or supported generation and transmission projects [3] Group 3: Market Position and Analyst Recommendations - Morgan Stanley raised its price target for AEP to $137 from $133, reiterating an Overweight rating, and noted that utilities outperformed the S&P 500 in February, indicating a constructive outlook for the utility sector [2] - Recent discussions in the utility sector highlighted steady growth opportunities, better visibility on load demand, and continued momentum in signing data center-related deals [2]

Morgan Stanley Boosts AEP PT, Highlights Constructive Utility Sector Outlook - Reportify