UPDATE: Morgan Stanley Downgrades American Electric Power to Equal-Weight on Limited Upside

Morgan Stanley downgraded American Electric Power

from Overweight to Equal-weight and lowered the price target from $46.00 to $45.00. Morgan Stanley commented, "With strong outperformance since our upgrade in mid-2012, AEP shares are now trading in-line with diversified peers. We utilize the more discounted diversified utility valuation since when AEP's agreement in Ohio ends in 2½ years, the company may be exposed to weaker market energy/capacity prices." American Electric Power closed at $43.22 on Wednesday.