Seaport Global Securities upgraded American Electric Power (NASDAQ:AEP) to Buy from Neutral, assigning a $145 price target.
The firm cited a favorable load growth outlook, noting that AEP traded at only a modest 3% premium to peer electric utilities based on its updated 2028 earnings estimates.
Analysts highlighted the company’s rural service territories as a competitive advantage, particularly as demand for data center infrastructure accelerates. While regulatory complexity remained a factor, recent favorable outcomes in historically challenging jurisdictions such as West Virginia and Kentucky were viewed as positive developments.
Seaport also identified potential upside to 2027 and beyond earnings forecasts, driven by increased transmission capital expenditures tied to rising electricity demand in key regions including Ohio, Texas, and Indiana.
Although lower allowed returns on equity in certain states could limit some upside, the firm believed overall estimates were likely to trend higher.
The $145 price target reflected a 10% premium to the firm’s 2028 price-to-earnings multiple assumption of 17.2x, with the upgrade coming ahead of AEP’s first-quarter 2026 earnings report.
