Jefferies Maintains a 'Buy' on American Electric Power (AEP); Adjusting Estimates on Capacity Expectations

Jefferies maintains a 'Buy' on American Electric Power (NYSE: AEP) price target of $43.50 (from $43.00).

Analyst, Paul B. Fremont, said, "The long-term earnings of AEP will largely be a function of market prices when AEP-Ohio goes to competition most likely in mid-2015. The earnings drivers post-2015 are AEP’s retail business and cost control. Based on our 2015 estimate of $3.40, the stock is currently trading at an 8% discount to other regulated companies."

Citing expectations for final outcomes in capacity and ESP in July, Jefferies lowers FY12 EPS estimate from $3.10 to $3.05, FY13 from $3.30 to $3.00 and FY14 from $3.45 to $3.15.

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 $39.39 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Target (TGT) PT Raised to $170 at DA Davidson Ahead of Q2 Earnings
• DA Davidson Reiterates Neutral Rating on Brunswick Corp (BC)
• DA Davidson Reiterates Buy Rating on Walmart (WMT) Ahead of Earnings