Morgan Stanley Keeps an Overweight Rating on American Electric Power Company, Inc. (AEP)

American Electric Power Company, Inc. (NASDAQ:AEP) is among the 15 Best Electric Utility Stocks to Invest In Now.

American Electric Power Company, Inc. (NASDAQ:AEP) is among the Best Utility Stocks.

On February 20, 2026, Morgan Stanley raised American Electric Power Company, Inc. (NASDAQ:AEP)’s price target to $133 from $125 while maintaining an Overweight rating. Morgan Stanley updated its price forecasts for the North American Regulated and Diversified Utilities and IPPs. The firm found that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview forecasts balanced discussions regarding data center pipelines in light of affordability and political concerns.

On the same day, TD Cowen analyst Shelby Tucker elevated American Electric Power Company, Inc. (NASDAQ:AEP)’s price objective to $141 from $137 while maintaining a Buy rating. TD Cowen noted a strong pipeline of capital opportunities across the company’s operational locations, as well as sustained modest gains in earned returns on equity.

On February 20, 2026, Jefferies boosted its price objective for American Electric Power Company, Inc. (NASDAQ:AEP) to $150 from $137 while retaining a Buy rating. Jefferies said the investment thesis has improved significantly since October, as contracted demand has risen to 56 gigawatts by 2030 from 28 gigawatts, with 36 gigawatts focused in ERCOT.

American Electric Power Company, Inc. (NASDAQ:AEP) produces, transmits, and distributes electricity. It works in four segments: vertically integrated utilities, transmission and distribution utilities, AEP Transmission Holdco, and generation and marketing.

While we acknowledge the potential of AEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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