
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power is experiencing significant growth in customer demand, particularly in the commercial and industrial sector, having secured agreements for 24 GW of new load by 2030, an increase from a previous 21 GW. This bolstered demand underpins a projected $16 billion increase in the company's capital expenditure plan, raising the total to approximately $70 billion, which reflects a strong commitment to infrastructure development and expansion. Furthermore, forecasts indicate an above-consensus EPS growth of approximately 7.25%, reinforcing a positive outlook on the company's financial performance amidst robust long-term demand trends.
Bears say
American Electric Power faces significant financial challenges primarily due to its reliance on coal, which is subject to accelerating environmental regulations that could lead to unplanned capital expenditures and stranded assets. Additionally, the company risks overbuilt infrastructure and under-recovered investments if customer demand fails to materialize, compounded by the potential impact of rising interest rates and tighter credit markets on financing. The trailing twelve months (TTM) funds from operations to debt (FFO/debt) ratio of 13.2% is below the targeted 14%-15%, indicating ongoing financial strain that could undermine investor confidence.
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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