American Electric Power Company
American Electric Power Company (AEP) stock has a median target price of $82.44 compared to its current market price of $82.98, indicating flat to negative movement for the next 12 months. Morgan Stanley raised AEP’s price target from $84.0 to $86.0 on March 13.
Wall Street analysts largely seem positive on AEP stock at the moment. Of the total 17 analysts tracking AEP, three have given the stock “strong buy” recommendations, eight have given it “buy” recommendations, and six have given it “hold” recommendations. No analysts currently recommend AEP as a “sell” as of March 15.
AEP stock is trading at a forward PE ratio of 20x based on analysts’ earnings estimates for 2019. AEP’s historical average valuation is close to 17x. It seems to be trading at a premium valuation compared to its peers as well as the historical average. AEP stock has risen more than 25% in the last 12 months. AEP’s peer Duke Energy (DUK) is trading at a forward PE multiple of 18x.
American Electric Power has one of the longest dividend payment histories among the utility giants. It’s been paying cash dividends for the last 435 consecutive quarters. It’s trading at a dividend yield of 3.2%, in line with the broader utilities (XLU). Duke Energy’s dividend yield is currently 4.1%.
Duke Energy stock also offers flattish movement based on analysts’ consensus price target for its stock. Its median price target is $90.22, and it’s trading at $90.36.