Wells Fargo Updates Long-Term Valuation Framework for American Electric Power (AEP)

American Electric Power Company, Inc. (NASDAQ:AEP) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts.

Wells Fargo Updates Long-Term Valuation Framework for American Electric Power (AEP)

On January 20, Wells Fargo raised its price objective on American Electric Power Company, Inc. (NASDAQ:AEP) to $140 from $139 and maintained an Overweight rating. The firm said the change reflects a decision to roll its valuation forward by one year, now looking out to 2028.

In a separate development, Reuters reported on January 8 that American Electric Power Company, Inc. (NASDAQ:AEP) plans to move ahead with a major fuel cell investment. One of the company’s units will purchase a large portion of its option for solid oxide fuel cells in a deal valued at about $2.65 billion. The investment supports AEP’s plan to develop and build a fuel cell power generation facility.

AEP first agreed with Bloom Energy in 2024 to acquire 100 megawatts of solid oxide fuel cells. That deal also included an option to buy an additional 900 MW. Earlier this month, the company’s unit exercised that option, according to a regulatory filing.

The company also disclosed that it has lined up a long-term buyer for the power. AEP signed a 20-year offtake agreement with an unnamed customer that will take the full output from the planned facility near Cheyenne, Wyoming. The agreement remains subject to certain conditions, which AEP expects to be met by Q2 2026. If those conditions are not met, the company said it would receive financial compensation covering its capital investment and related costs.

American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Through its operating utilities, it provides generation, transmission, and distribution services to more than five million retail customers across various states.

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