BMO Capital analyst James Thalacker maintained a Buy rating on American Electric Power (AEP – Research Report) yesterday and set a price target of $115.00.
James Thalacker has given his Buy rating due to a combination of factors that highlight American Electric Power’s strong growth potential and strategic initiatives. The company’s revised earnings estimate for the first quarter of 2025 is higher than the previous year, indicating positive financial momentum. This increase is attributed to favorable weather conditions, load growth, rate relief, and higher transmission revenues, which collectively enhance the company’s financial standing.
Additionally, American Electric Power’s focus on supply decarbonization and transmission investments positions it for long-term growth, supporting a premium valuation. The company’s improved credit profile and manageable equity needs further strengthen its investment appeal. These factors, combined with a derisked balance sheet and strategic sales of minority interests, make American Electric Power a compelling investment opportunity according to Thalacker’s analysis.
According to TipRanks, Thalacker is a 5-star analyst with an average return of 12.7% and a 63.69% success rate. Thalacker covers the Utilities sector, focusing on stocks such as Centerpoint Energy, CMS Energy, and Duke Energy.