Ratings for American Electric Power (NASDAQ:AEP) were provided by 13 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 4 6 0 1
Last 30D 0 1 0 0 0
1M Ago 2 2 3 0 0
2M Ago 0 1 2 0 0
3M Ago 0 0 1 0 1

Insights from analysts' 12-month price targets are revealed, presenting an average target of $133.69, a high estimate of $153.00, and a low estimate of $107.00. This upward trend is evident, with the current average reflecting a 5.12% increase from the previous average price target of $127.18.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of American Electric Power's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Nicholas Amicucci Evercore ISI Group Raises Outperform $153.00 $137.00
Paul Fremont Ladenburg Thalmann Announces Buy $148.00 -
William Appicelli UBS Raises Neutral $132.00 $115.00
Shelby Tucker TD Cowen Raises Buy $141.00 $137.00
James Thalacker BMO Capital Raises Market Perform $136.00 $125.00
Shahriar Pourreza Wells Fargo Raises Overweight $141.00 $140.00
Anthony Crowdell Mizuho Raises Neutral $130.00 $123.00
Steve Fleishman Wolfe Research Announces Outperform $142.00 -
Nicholas Campanella Barclays Raises Equal-Weight $121.00 $117.00
Shahriar Pourreza Wells Fargo Raises Overweight $140.00 $139.00
Ross Fowler B of A Securities Lowers Neutral $122.00 $131.00
William Appicelli UBS Lowers Sell $107.00 $114.00
Jeremy Tonet JP Morgan Raises Neutral $125.00 $121.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to American Electric Power. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Electric Power compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of American Electric Power's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into American Electric Power's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on American Electric Power analyst ratings.

Discovering American Electric Power: A Closer Look

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 39% of AEP's capacity is coal, with the remainder from a mix of natural gas (28%), renewable energy and hydro (23%), nuclear (7%), and demand response (3%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.

Financial Milestones: American Electric Power's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: American Electric Power's remarkable performance in 3M is evident. As of 31 December, 2025, the company achieved an impressive revenue growth rate of 13.19%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.95%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): American Electric Power's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.89%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): American Electric Power's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.52%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: American Electric Power's debt-to-equity ratio is below the industry average at 1.59, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.