Jefferies Decreases EPS Estimates from $3.10 To $2.90 And Increases PT From $38.00 To $39.50 On American Electric Power (AEP)

In a recent report, Jefferies has decreased the 2011 EPS estimates on American Electric Power

from $3.10 to $2.90 and increased the price target from $38.00 to $39.50 after the Public Utilities Commission of Ohio issued an order today, notifying AEP to reduce 2011 EPS by $0.20 as court order. In the report, Jefferies said, "We believe it will take several months for a record to be established in this case and assume it will not be resolved until the new electric security plan (

) is in rates for January 1, 2012. Additionally, intervenors have little incentive to act quickly since the longer it takes for the case to get resolved the lower they pay in electric rates." AEP closed yesterday at $36.64.