TD Cowen Sees More Growth Ahead for American Electric Power (AEP)

American Electric Power Company, Inc. (NASDAQ:AEP) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.

TD Cowen Sees More Growth Ahead for American Electric Power (AEP)

On May 15, TD Cowen analyst Shelby Tucker raised the firm’s price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $148 from $141.  It reiterated a Buy rating on the shares. The firm updated its utility sector models following first-quarter earnings reports. The analyst said utilities are increasingly expected to deliver incremental growth in a cost-neutral way. TD Cowen also expects companies in the sector to accelerate increases to their capital plans, though the firm cautioned that over-promising remains a concern.

On May 7, Scotiabank raised its price goal on AEP to $140 from $131. It kept a Sector Perform rating on the stock. The firm said it was impressed by the company’s “robust” EPS growth outlook, which once again moved higher to a “greater than 9% CAGR” following the announcement of additional capital projects. Scotiabank also noted that after strong outperformance over the past 1-, 3-, 6-, and 12-month periods, the shares are now trading at more than a 10% P/E premium compared to peers. According to the firm, that valuation level has not been seen in at least the past decade, if ever.

American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company. Its operating utilities provide generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

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