Jefferies Maintains a 'Hold' on American Electric Power (AEP); Guiding Lite

Jefferies maintains a 'Hold' on American Electric Power (NYSE: AEP) price target raised $1 to $40.

Jefferies analyst said, "The plan to spin-off the company’s Ohio generating assets to an unregulated subsidiary would transform AEP’s business mix from fully regulated today to 75% regulated and 25% commodity beginning in 2015. As with other merchant integrated companies we would value the regulated utility business on a P/E basis and use EV/EBITDA on the company’s merchant operations. Using our revised valuation we believe that the company is fairly valued at current levels."

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 $39.95 yesterday.

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