UPDATE: Deutsche Bank Cuts Target to $39 on American Electric Power

Deutsche Bank lowers its target price on Hold-rated American Electric Power

by $2 to $39 on a revoked Ohio state decision over the company's rate increases. Deutsche Bank says, "The Public Utilities Commission of Ohio (PUCO) issued an order on rehearing in AEP's Electric Security Plan (

) case, revoking their prior decision and essentially restarting the proceeding. PUCO had indicated they would address small business concerns over rate increases under the new ESP, but the decision to completely overturn the approved stipulation was a surprise. While we had previously highlighted the uncertainty in Ohio in our January downgrade, this decision throws AEP's earnings outlook into further question." AEP closed at $37.91 a share yesterday.