UPDATE: JP Morgan Raises PT to $44 on American Electric Power Company Post Rate Ruling
JP Morgan reiterated its Neutral rating on American Electric Power Company (NYSE: AEP) and increased its price target from $42 to $44.
In the report, JP Morgan noted, "Earlier this week PUCO issued a final order regarding allowed capacity rates during the three year transition to deregulation for AEP's Ohio generating fleet. AEP is now permitted to charge CRES providers $189/MW day, regardless of the amount of customer switching. Amounts above market prices will be deferred via a recovery mechanism to be determined in PUCO's final ESP order. The new rate translates into increased gross margin on the previously capped portion of switching, but a reduced amount for levels above that, with the net impact depending on the total amount of switching."
American Electric Power Company closed at $41.04 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.