American Electric Power Company, Inc. (AEP) Sees Positive Outlook from Jefferies

Font: Financial Modeling Prep  • Feb 20, 2026

• Jefferies upgraded NASDAQ:AEP to a "Buy" rating, raising the price target from $137 to $150.
• AEP reported operating earnings of $1.19 per share for the fourth quarter, beating the Zacks Consensus Estimate.
• The company anticipates annual shareholder returns of 10% to 13% through 2030, driven by a $72 billion capital plan and growth in AI-driven data centers.

American Electric Power Company, Inc. (NASDAQ:AEP) is a major player in the utility sector, providing electricity to millions of customers across the United States. The company is known for its focus on sustainable energy and infrastructure development. AEP competes with other utility giants like Duke Energy and NextEra Energy, striving to maintain its position as a leader in the industry.

On February 20, 2026, Jefferies upgraded AEP to a "Buy" rating, with the stock priced at $128.42. This positive outlook is supported by AEP's strong financial performance and strategic growth initiatives. Jefferies also raised the price target for AEP from $137 to $150, reflecting confidence in the company's future prospects.

AEP's robust fourth-quarter earnings highlight its potential as a strong investment. The company reported operating earnings of $1.19 per share, surpassing the Zacks Consensus Estimate of $1.15. Despite a slight decline from the previous year's EPS, AEP's full-year operating earnings of $5.97 per share exceeded expectations, showcasing its financial strength.

The company's growth is driven by increasing demand for AI-driven data centers and a substantial $72 billion capital plan. AEP anticipates annual shareholder returns of 10% to 13% through 2030, supported by additional projects worth $5 billion to $8 billion. This strategic focus on growth and innovation positions AEP as a promising investment.

AEP's commitment to shareholder returns is evident in its increased quarterly dividend of $0.95 per share. The company delivered a total shareholder return of 29% for 2025, making it one of the top performers in the industry. Looking ahead, AEP projects a long-term earnings growth rate of 7% to 9% from 2026 to 2030, reinforcing its strong market position.