Truist Says Data Center Expansion Could Drive Further Upside for American Electric Power (AEP)

With an annual dividend yield of 3.01%, American Electric Power Company, Inc. (NASDAQ: AEP ) is included among the Top 10 High Dividend Stocks to Invest In According to Analysts .

On May 29, Truist analyst Richard Sunderland lowered his price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $145 from $148. He reiterated a Buy rating on the stock. The update came as part of a broader research note covering Power and Utilities companies. The firm said that positive estimate revisions would reinforce the view that American Electric is well-positioned to benefit from nationwide data center construction. Truist also noted that the pace of data center development could still provide upside surprises, even compared with its already favorable outlook. The analyst shared these views in a research note to investors.

Earlier, on May 21, Morgan Stanley analyst David Arcaro reduced the firm’s price target on AEP to $129 from $136 and maintained an Overweight rating on the shares. The firm updated its April price targets for Regulated & Diversified Utilities and Independent Power Producers (IPPs) across North America. Morgan Stanley noted that utility stocks underperformed the S&P 500 during the month, according to the analyst’s note to investors.

American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Through its operating utilities, the company provides generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.

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