
AEP Stock Forecast & Price Target
AEP Analyst Ratings
Bulls say
American Electric Power (AEP) is experiencing a significant increase in capital expenditure, with a projected boost of $16 billion, raising the total capex plan to $70 billion, driven by surging customer demand, particularly from commercial and industrial (C&I) sectors. The company has secured agreements for 24GW of new load by 2030, highlighting robust long-term demand trends that support future growth. AEP's earnings per share (EPS) growth forecast has been revised upward to approximately 7.25%, demonstrating an above-consensus outlook and reflecting strong financial performance expectations.
Bears say
American Electric Power faces significant risks related to environmental regulations that may accelerate coal retirements, potentially resulting in unplanned capital expenditures, stranded assets, and increased costs for replacement generation projects. The company also contends with uncertainties regarding demand, which could lead to overbuilt infrastructure and under-recovered investments, compounded by financing risks stemming from rising interest rates and tighter credit markets. Furthermore, the trailing twelve months (TTM) funds from operations (FFO) to debt ratio of 13.2% is below the targeted threshold of 14%-15%, indicating potential challenges in maintaining financial stability.
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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