Deutsche Bank Downgrades American Electric Power (AEP) to Hold; PUCO Clarification of ESP Order Introduces New Uncertainty in Outlook

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Deutsche Bank downgraded American Electric Power (NYSE: AEP) from Buy to Hold, price target cut $1 to $41.

Deutsche analyst says, "We are downgrading AEP as it now appears fairly valued on our earnings outlook after recent outperformance. Meanwhile, we learned this week that PUCO has introduced a new layer of uncertainty in Ohio with a recent order clarifying the Electric Security Plan (ESP) decision. We believe AEP should continue to trade at a discount to peers given uncertainty in the earnings outlook relative to regulated peers. Plus, we now see new downside risk to our estimates from the PUCO order, which could allow for more customer switching in 2012-14."

For an analyst ratings summary and ratings history on American Electric Power click here. For more ratings news on American Electric Power click here.

Shares of American Electric Power closed at $41.28 yesterday, with a 52 week range of $33.09-$41.98.

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