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Investing.com - Raymond James raised its price target on American Electric Power (NASDAQ:AEP) to $138.00 from $123.00 while maintaining an Outperform rating. The stock is currently trading at $122.43, just below its 52-week high of $122.79, and has delivered an impressive 35.94% return year-to-date according to InvestingPro data.
The firm highlighted AEP’s position as the leading transmission player in the U.S. electric utilities space with diverse operations across 11 states. With a market capitalization of $65.55 billion, AEP trades at a P/E ratio of 17.88 and offers a dividend yield of 3.11%.
Raymond James cited an impressive approximately 28 GW large-load pipeline by 2030 that will fuel spending on a now $72 billion five-year capital plan, with another approximately 190 GW of requests suggesting potential upside over time. InvestingPro analysis shows AEP trading at a low PEG ratio of 0.47, indicating an attractive valuation relative to its growth prospects.
The investment firm also noted improving regulatory relationships and outcomes for the utility company. This regulatory stability complements AEP’s impressive dividend history, having maintained dividend payments for 55 consecutive years.
These factors have led American Electric Power to raise its operating earnings growth forecast to 7-9% through 2030, up from the previous 6-8% target, which Raymond James described as "one of the highest multi-year targets among large-cap U.S. utilities." For investors seeking deeper insights, InvestingPro offers a comprehensive Pro Research Report on AEP, one of 1,400+ US equities covered with detailed analysis and actionable intelligence.
In other recent news, American Electric Power reported its Q3 2025 earnings with an earnings per share (EPS) of $1.80, slightly below the expected $1.81. Despite this minor miss, the company’s revenue exceeded forecasts, reaching $6.01 billion compared to the anticipated $5.77 billion. The strong revenue figures were supported by strategic initiatives in renewable energy and infrastructure. Additionally, BMO Capital downgraded American Electric Power’s stock rating from Outperform to Market Perform, maintaining a price target of $126.00. The downgrade was attributed to the successful repositioning of the company over the past year, which is now reflected in its stock valuation. These developments provide investors with key insights into the company’s financial performance and market position.
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