12 Best Electrical Infrastructure Stocks to Buy According to Analysts

Page 3 of 11

9. American Electric Power Company, Inc. (NASDAQ:AEP)

Average Analyst Upside: 8.99%

Number of Hedge Fund Holders: 36

American Electric Power Company, Inc. (NASDAQ:AEP), headquartered in Columbus, Ohio, delivers reliable and affordable electricity to 5.6 million customers across 11 states. The company operates the largest electric transmission system in the U.S., spanning over 40,000 miles, and continues to make significant investments in renewable energy initiatives, aligning with broader utility sector trends.

The company is poised to capitalize on the growing renewable energy trend, targeting annual growth of 15-20% in its renewable energy portfolio. By 2033, American Electric Power Company, Inc. (NASDAQ:AEP) plans to add up to 8,982 megawatts of wind power and 7,470 megawatts of solar energy. To that end, SWEPCO, an AEP subsidiary, recently announced three renewable projects currently under construction. These include the 200-MW Diversion Wind Farm in Texas, expected to be operational by December 2024, the 598-MW Wagon Wheel Wind Facility in Oklahoma, slated for completion by December 2025, and the 72.5-MW Rocking R Solar Facility in Louisiana.

On December 2, BMO Capital raised its price target for American Electric Power (NASDAQ:AEP) to $108, up from the previous $104, while maintaining an Outperform rating. The revised forecast reflects a 6.0% earnings per share CAGR from 2024 to 2028, slightly below the company’s own projected range of 6-8%. Despite this more conservative outlook, BMO Capital acknowledges potential for higher growth than its estimates.

As per Insider Monkey’s Q3 data, 36 hedge funds held stakes in American Electric Power Company, Inc. (NASDAQ:AEP), compared to 35 in the previous quarter.

Page 3 of 11