American Electric initiated with a Sell at Ladenburg

Ladenburg analyst Paul Fremont initiated coverage of American Electric Power with a Sell rating and $82.50 price target. The legislation recently adopted in Kentucky may thwart Algonquin’s plans to add renewable generation in the state making the Kentucky Power deal less attractive, the analyst tells investors in a research note. Additionally, American Electric, like many other utilities, is running into increasing push back from its regulators, says the firm. It believes the company may be challenged in the current environment to maintain its current level of earned returns.