American Electric price target lowered to $90 from $103 at RBC Capital

RBC Capital lowered the firm’s price target on American Electric Power to $90 from $103 and keeps an Outperform rating on the shares. The analyst updated the firm’s regulated utility valuation multiples to reflect a “persistent higher” interest rate environment. The firm’s new price-to-earnings multiples for all utilities are now using a 4.5% 10-year Treasury yield, which dropped its valuations by 13%.