BofA analyst Julien Dumoulin-Smith lowered the firm’s price target on American Electric to $77 from $91 and keeps a Neutral rating on the shares. The firm has updated its forecast to reflect an incremental 14c of interest expense over the next three years from coming refinancings and also moved down its assumed earned ROE forecast for Public Service of Oklahoma to 8% from 9% to reflect recent results, the analyst tells investors. With shares of American Electric trading at a substantial discount to the group, some investors have flagged the stock as a potential 2024 comeback story, but the firm sees “no reason to step in with lower revisions coming,” the analyst added.
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