Morgan Stanley Boosts AEP PT, Highlights Constructive Utility Sector Outlook

American Electric Power Company, Inc. (NASDAQ:AEP) is included among the Dividend Stock Portfolio for Income: 15 Stocks to Invest In.

On March 23, Morgan Stanley raised its price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $137 from $133. It reiterated an Overweight rating on the shares. The firm said it is revisiting its price targets across regulated and diversified utilities and IPPs in North America. It pointed out that utilities outperformed the S&P 500 in February, which stood out given the broader market backdrop. Recent discussions in the sector sounded constructive. Companies talked about steady growth opportunities, better visibility on load demand, and continued momentum in signing data center-related deals.

On the earnings side, during the Q4 2025 call, American Electric said it is sticking with its 2026 operating EPS guidance of $6.15 to $6.45. It also left its longer-term outlook unchanged, still expecting earnings to grow 7% to 9% annually from 2026 through 2030. Management said the $72 billion five-year capital plan is based on an earlier estimate of 28 gigawatts of incremental demand. Within that, it pointed to $5 billion to $8 billion of generation and transmission projects that are already confirmed or have support in place.

American Electric Power Company, Inc. (NASDAQ:AEP) operates as a public utility holding company. Its operating units handle generation, transmission, and distribution, serving more than five million customers across multiple U.S. states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

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