JPMorgan Downgrades American Electric Power (AEP) to Neutral

JPMorgan analyst Jeremy Tonet downgraded American Electric Power (NASDAQ: AEP) from Overweight to Neutral with a price target of $102.00 (from $109.00).

The analyst comments: "New CEO Bill Fehrman has introduced a number of key organizational changes that we view as encouraging, particularly as AEP looks to improve regulatory outcomes across its jurisdictions, with pronounced focus on tailoring utility objectives to state goals. However, the transition likely takes time, with a ~30bp ROE improvement in 2025 not necessarily an easy task to start with. While appreciating the company’s increasing regulated generation opportunity, AEP remains a majority wires company and we see data center and onshoring load growth trends providing more upside to those with more generation torque, such as XEL. Moreover, lowering the corporate tax rates or changing tax credits could introduce B/S pressure. Overall, scrutiny of multi-state wires-heavy names across PJM and ISO-NE remains high. With an extended road to mending local level stakeholder relationships and our general preference for generation-focused growth, we see stronger risk/reward propositions elsewhere in our coverage and downgrade AEP to Neutral (Dec 2025 PT to $102, from $109)."

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 $93.63 yesterday.

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