American Electric price target lowered to $111 from $114 at BMO Capital

BMO Capital analyst James Thalacker lowered the firm’s price target on American Electric to $111 from $114 but keeps an Outperform rating on the shares. The Public Utility Commission of Texas voted to approve the proposed settlement agreement in the AEP Texas rate case without modification, and the approval of the settlement is a “modest positive”, the analyst tells investors in a research note. BMO sees American Electric as one of the more attractive relative value opportunities in its coverage based on its improving credit profile, manageable equity needs, and improving regulated ROE profile.