Barclays Maintains an 'Overweight' on American Electric Power (AEP); A Fair Deal in Ohio

Barclays maintains an 'Overweight' on American Electric Power (NYSE: AEP) price target of $44.00.

Barclays analyst says, "We've taken a closer look at the recently announced settlement in Ohio, as well as the coming capacity changes, pending and expected rate cases, and EPA-inspired retirements, and find ourselves comfortable that AEP will be able to earn $3.10/$3.20 in 2011/2012. AEP remains among the cheapest regulated stocks in our coverage, despite having reached a settlement in a state that represents ~40% of its earnings, and having gained a great deal more earnings clarity for the next three years as a result. We are very modestly adjusting our 2013 estimate from $3.32 to $3.33. Provided the settlement gets approved in a form close to what we see today, we believe the storm will have passed, and AEP's discount versus its peers should be greatly reduced."

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 $37.08 yesterday.

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