Barclays Reiterates an 'Overweight' on American Electric Power (AEP); Constructive Supreme Court Outcome

Barclays reiterates an 'Overweight' on American Electric Power (NYSE: AEP), PT $44.

Barclays analyst says, "Our investment thesis for AEP assumes a reasonable outcome in the current Ohio regulatory proceedings. We believe uncertainty around the Ohio regulatory process is responsible for the stock's current discount. Forthcoming events for AEP in Ohio are staff testimony this Thursday (7/7), intervenor testimony in the electric security plan (ESP) case on July 15th, and staff testimony in the ESP on July 29th. We expect a final order by the end of October...At a 13% discount to the regulated group on '13 and a 4.8% dividend yield, we see total return potential of 19% for AEP. Our price target of $44 reflects a regulated group utility multiple of 13.0x our 2013 EPS estimate of $3.32 and $1/sh of cash."

For more ratings news on American Electric Power click here and for the rating history of American Electric Power click here.

Shares of American Electric Power closed at $38.51 yesterday.

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