
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power (AEP) has demonstrated significant growth potential, primarily driven by an increase in capital expenditure (capex) to cater to customer demand, with secured agreements for 24GW of new load anticipated by 2030. The company is projecting an above-consensus earnings per share (EPS) growth of approximately 7.25%, indicating a strengthening financial outlook. Furthermore, a prospective $16 billion, or 30%, increase in the capex plan, raising the total to $70 billion, reflects robust long-term demand trends, particularly from data center clients.
Bears say
American Electric Power faces significant risks related to potential coal retirements driven by evolving environmental regulations, which could lead to unplanned capital expenditures for replacement generation sources and the potential for stranded assets. The company's financial performance may be further challenged by delays in load growth, resulting in overbuilt infrastructure and under-recovered investments. Additionally, rising interest rates and tighter credit markets pose increased financing risks, while the current TTM FFO/debt ratio of 13.2% falls short of the desired 14%-15% target, indicating potential liquidity and solvency concerns.
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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