5 Best Utility Stocks to Buy Now According to Hedge Funds

In this article, we will take a look at the 5 Best Utility Stocks to Buy Now According to Hedge Funds. For a deeper discussion and analysis, please refer to the 12 Best Utility Stocks to Buy Now According to Hedge Funds.

5. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 62

American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation’s largest electricity producers with approximately 29 GW of diverse generating capacity.

On June 24, Morgan Stanley lifted its price objective on American Electric Power Company, Inc. (NASDAQ:AEP) from $129 to $136 and reiterated its ‘Overweight’ rating on the stock. The target boost still represents a downside of 2% from the current levels.

Morgan Stanley revised its price estimates for the North American Regulated & Diversified Utilities / IPPs as part of its monthly update. The analyst firm noted that the broader utilities sector declined by 5.5% last month, sharply lagging behind the 5.1% gains posted by the overall S&P over the same period.

On the other hand, Ladenburg turned slightly bearish on American Electric Power Company, Inc. (NASDAQ:AEP) on June 18 and trimmed its price target on the stock by $5 (read more details here).

American Electric Power continues to ride the AI boom and signed 7 GW of ​new large energy project agreements during the first quarter. The utility’s incremental load is expected to grow to 63 GW by 2030, with nearly 90% of it coming from data centers. As a result, it raised its five-year CapEx plan from $72 billion to $78 billion, and also increased its expected long-term operating earnings CAGR to greater than 9%.