
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power (AEP) is experiencing notable growth in customer demand, having secured agreements for 24GW of new load by 2030, indicating a robust long-term outlook. The company has forecasted an above-consensus earnings per share (EPS) growth of approximately 7.25%, reflecting increasing operational efficiency and market position. Additionally, AEP is anticipating a significant 30% increase in its capital expenditure plan, raising it to $70 billion, which will support further infrastructure development and enhance its service capabilities.
Bears say
The financial outlook for American Electric Power is negatively impacted by potential environmental regulations that could accelerate coal retirements, leading to unplanned capital expenditures and higher replacement costs for delayed or over-budget projects in gas, nuclear, or storage. Additionally, there are concerns regarding overbuilt infrastructure and under-recovered investments due to the possibility of load failures or delays. Furthermore, the firm's TTM funds from operations (FFO) to debt ratio of 13.2% is below the targeted range of 14%-15%, indicating underlying financial weaknesses that could heighten financing risks amidst rising interest rates and tighter credit markets.
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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