American Electric Power Reaffirms 2025 Outlook With Minimal Tariff Risk On $54B Grid Investment Plan
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Financial Performance: American Electric Power Company reported first-quarter revenue of $5.46 billion and adjusted EPS of $1.54, both exceeding consensus estimates. Energy distribution increased significantly across various segments, with commercial load rising by 12.3% year-over-year.
Future Outlook: AEP reaffirmed its FY25 adjusted EPS guidance of $5.75 – $5.95 and highlighted a long-term growth rate outlook of 6% to 8%, while planning to invest $54 billion in capital improvements over the next five years.
Analyst Views on AEP
Wall Street analysts forecast AEP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AEP is 127.27 USD with a low forecast of 107.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
7 Buy
8 Hold
1 Sell
Moderate Buy
Current: 117.180
Low
107.00
Averages
127.27
High
139.00
Current: 117.180
Low
107.00
Averages
127.27
High
139.00
About AEP
American Electric Power Company, Inc. is an electric public utility holding company. Its electric utility operating companies provide generation, transmission and distribution services to more than five million retail customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. Its segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco and Generation & Marketing. The Vertically Integrated Utilities is engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. The Transmission and Distribution Utilities consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco is engaged in development, construction and operation of transmission facilities. The Generation & Marketing segment conducts Marketing, risk management and retail activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
