
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power is experiencing strong demand trends, particularly from commercial and industrial customers, leading to a significant increase in capital expenditure (capex) plans, which are projected to reach $70 billion. The utility has secured customer agreements for an additional 24GW of new load by 2030, enhancing its growth prospects. Additionally, the company's earnings per share (EPS) growth is forecasted to exceed consensus estimates, with an anticipated growth rate of approximately 7.25%, reflecting robust long-term demand and a positive outlook for the business.
Bears say
The financial outlook for American Electric Power (AEP) is negatively influenced by potential increased capital expenditures resulting from accelerated coal retirements due to environmental regulations, leading to the risk of stranded assets and higher replacement costs for delayed projects in gas, nuclear, or storage. Additionally, the company faces risks associated with load growth not materializing as anticipated, which could contribute to overbuilt infrastructure and under-recovered investments, thereby impacting revenue streams adversely. Furthermore, AEP's TTM FFO/debt ratio of 13.2% falls short of the targeted range of 14%-15%, indicating financial strain and elevated risks in rising interest rate and credit market environments.
This aggregate rating is based on analysts' research of American Electric Power Company and is not a guaranteed prediction by Public.com or investment advice.
AEP Analyst Forecast & Price Prediction
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