American Electric Power stock price target raised to $116 from $109 at Mizuho

Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating on American Electric Power (NASDAQ:AEP) while raising its price target to $116.00 from $109.00 on Thursday. The utility giant, with a market capitalization of $60.66 billion, is currently trading near its 52-week high at $113.83, having delivered an impressive 25% return year-to-date. According to InvestingPro analysis, the stock appears overvalued at current levels.

American Electric Power reported second-quarter earnings per share of $1.43, exceeding the consensus estimate of $1.27. The stock rose 3.2% as investors reacted to the company’s announcement of a 30% increase to $70 billion in its five-year plan. InvestingPro data reveals the company maintains a solid financial health score of "GOOD" and has consistently raised its dividend for 15 consecutive years, demonstrating strong operational stability.

Mizuho noted that positive investor sentiment focused on AEP’s ability to narrow its under-earning, particularly in Texas with recently passed tracker legislation, and through Multi-Year Rate Plans in Ohio. Management also projected 24 gigawatts of incremental load growth through 2029, compared to the current system load of 37 gigawatts.

The firm acknowledged that some investors expressed concern that the increased capital expenditure did not change AEP’s earnings per share compound annual growth rate. Management indicated they want to see financial and operational performance improvements before making any earnings per share adjustments.

Mizuho’s updated price target of $116, up from $109, reflects current market multiples while maintaining a Neutral stance on the stock.

In other recent news, American Electric Power reported its second-quarter earnings for 2025, surpassing expectations with earnings per share (EPS) of $1.43. This figure significantly exceeded the forecasted EPS of $1.22. The company’s revenue also outperformed projections, reaching $5.09 billion against the anticipated $4.9 billion. BMO Capital responded to these strong earnings by raising its price target for American Electric Power from $118.00 to $121.00, while maintaining an Outperform rating. The utility company’s earnings included tax-timing benefits, yet they still exceeded both BMO’s estimate of $1.25 and the consensus forecast of $1.27. These developments reflect positively on the company’s financial performance and have been noted by analysts and investors alike.

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