
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power is supported by a powerful load-growth story, with contracted load rising to 63GW by 2030, 90% tied to data centers/hyperscalers, and a broader ~190GW queue that points to additional upside. Management lifted capex by $6B to $72B for 2026-2030 and still sees more than $10B of spending upside, which should bolster transmission and distribution earnings while supporting a greater than 9% EPS CAGR through 2030. Its 1Q26 EPS of $1.64 beat consensus, and the company’s regulated platform, improving tariff approvals, and $16B of potential cost offsets help sustain affordability and customer growth even as some lower transmission ROEs may temper the full benefit.
Bears say
American Electric Power is facing a negative fundamental setup because 42% of its current growth plan and 53-55% of its 2026-2030 EPS estimates depend on transmission investments whose allowed ROEs already look elevated in KY, VA, and MI. A forthcoming MISO base ROE ruling within the next six months could reduce the 50 bps RTO adder, trigger customer refunds, and pressure earnings without any offset from higher base ROEs, limiting upside to 2029/2030 EPS. At the same time, rising DC-related capex, greater exposure to economic cycles, and higher PJM-driven energy and capacity charges in OH could strain customers, constrain growth capex, and increase stranded-asset risk.
This aggregate rating is based on analysts' research of American Electric Power Company and is not a guaranteed prediction by Public.com or investment advice.
AEP Analyst Forecast & Price Prediction
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