Market Overview

UPDATE: Deutsche Bank Raises PT on American Electric Power on Challenges Ahead

Related AEP
Jefferies Offers A Pair Trade In Electric Utilities: PNM Upgraded, American Electric Downgraded
Watch These 7 Huge Call Purchases In Wednesday Trade
3 Problems For Utility Investors (Seeking Alpha)

In a report published Wednesday, Deutsche Bank analyst Jonathan Arnold reiterated a Hold rating on American Electric Power Company (NYSE: AEP), and raised the price target from $48.00 to $50.00.

In the report, Deutsche Bank noted, “With utilities set to finish the year last among sectors for the second straight year, it is surely tempting to argue for a rebound in 2014. But with the Fed exit still in front of us and a continuing overhang from challenging power business fundamentals, investors have plenty of reason to proceed with caution. Compared to April when Fed taper talk began, utilities are at least much better relative value (P/E parity vs. ~20% premium) and closer to their lows in terms of mutual fund positioning. A market growth stall might be utilities' best hope for a winning 2014; in the meantime, we continue to counsel selectivity, mostly favoring better growth or value catalysts over pure defensiveness and yield.”

American Electric Power Company closed on Tuesday at $46.16.

Latest Ratings for AEP

Oct 2016CitigroupMaintainsNeutral
Sep 2016SunTrust Robinson HumphreyMaintainsBuy
Sep 2016JefferiesDowngradesBuyHold

View More Analyst Ratings for AEP
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Jonathan ArnoldAnalyst Color Price Target Analyst Ratings


Related Articles (AEP)

View Comments and Join the Discussion!