Keybanc Rates American Electric Power (AEP) Overweight

Keybanc has raised its rating on American Electric Power to Overweight with a new price target of $133, a 5.07% upside from the current price.

By EarningsIQ Research Desk · Published Oct 16, 2026, 2:05 PM EDT

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Keybanc rated American Electric Power Company, Inc. ($AEP) "Overweight" with a $133 price target on October 13, 2026.

Since the rating, $AEP is up 1.2% to date (from the $125.65 close on Oct 13, 2026).

AEP American Electric Power Company, Inc.

$127.14 +12.30% year to date

Daily close · Oct 16, 2026

Key Points

On October 13, 2026, Keybanc upgraded American Electric Power to an Overweight rating and set a price target of $133.
Keybanc's $133 price target implies 5.07% upside from American Electric Power Company, Inc.'s ($AEP) current $126.58 share price.
Currently, AEP shares are trading around $126.58, which is about 4.8% below Keybanc's new target.
The company reported a revenue of about $22.79 billion over the past year and has a dividend rate of $3.80.

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Not investment advice. EarningsIQ is not a registered investment adviser, and this automated American Electric Power Company, Inc. alert may contain errors. Disclosures

Keybanc has upgraded American Electric Power Company, Inc. (AEP) to an Overweight rating, setting a price target of $133 on October 13, 2026. This is a notable shift, as it marks a new target for the firm, which previously did not have a target for AEP. The stock is currently trading around $126.58, about 4.8% below the new target.

Other Institutional Activity in American Electric Power

Several other funds have been active with their positions in AEP. Blackrock Inc. holds 51,024,057 shares valued at approximately $6.49 billion, after increasing its stake by 3,226,346 shares, a 6.8% rise. Vanguard Capital Management LLC owns 35,529,471 shares worth about $4.52 billion, having added 390,048 shares for a 1.1% increase. State Street Corporation holds 30,783,142 shares valued at around $3.91 billion, increasing its position by 493,718 shares, or 1.6%.

American Electric Power Company, Inc. Stock Up 1.8%

AEP shares are currently trading below Keybanc's new price target. The stock is in a strong position within the utilities sector, having a revenue growth of 7% year-over-year. The shares are important for investors to watch as they remain near the recent trading level of $126.58.

12-month forecast

$AEP price target

American Electric Power Company, Inc. daily closes and this analyst's $133 target. Not advice.

Recent Earnings

For the trailing twelve months, AEP reported revenue of approximately $22.79 billion and earnings per share of $5.77. The company has a net margin of 13.8% and a return on equity of 10.1%. AEP's next earnings report is scheduled for October 29, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

B- 69/100

Reported May 5, 2026

Forward outlook
6 target raises vs 1 cuts.
EPS & revenue
EPS beat estimates by 3.5%. Revenue beat estimates by 4.9%.
Profit surprise
EBITDA missed by 11 percent. Operating income missed by 20 percent.
Pre-earnings setup
Expectations were about average.
Analyst signal
6 target raises, 1 target cut.
Earnings quality
Gross margin up 31.5 points. Operating margin down 3.2 points. Positive free cash flow.

Earnings Call Summary

AEP delivered strong first quarter earnings of $1.64 per share, beating consensus of $1.55, driven by positive regulatory outcomes and higher load growth. The company secured 7 additional gigawatts of contracted load in the quarter, bringing total contracted load to 63 gigawatts by 2030, mostly from data centers and industrial customers in Texas, Ohio, Indiana and Oklahoma. Management highlighted concerns about PJM's interconnection speed and is evaluating alternatives to ensure faster load connection, while also noting that customers value AEP's transmission expertise and ability to deliver on aggressive timelines.

Guidance AEP reaffirmed full year 2026 earnings guidance of $6.15 to $6.45 per share. The company raised its 5-year capital plan to $78 billion from $72 billion, expecting 11 percent rate base growth annually. Long-term earnings growth is now expected to exceed 9 percent per year through 2030, up from 7 to 9 percent.

Slightly positive report. The quarter was acceptable, but the forward setup is not strong.

Dividend

American Electric Power pays an annual dividend of $3.80 per share, with a payout ratio of 65.5%. This dividend is an attractive feature for income-focused investors.

Insider Buying and Selling at American Electric Power Company, Inc.

Insider trading activity shows that Director Benjamin G S Fowke III sold 5,000 shares on November 14, 2025, at an average price of $121.58, totaling about $607,900. He also sold another 5,000 shares on December 12, 2025, at $115.07, for around $575,350. Officer Kelly J. Ferneau sold 1,351 shares on February 24, 2026, at $131.46, totaling about $177,602. Additionally, Officer Kate Dixon sold 2,000 shares on September 8, 2026, at $125.00, for a total of $250,000.

Analysts Set New Price Targets

On October 13, 2026, Keybanc upgraded AEP to an Overweight rating with a new price target of $133. Earlier, Truist Securities maintained a Buy rating with a target of $139 on August 17, 2026, while Morgan Stanley maintained an Overweight rating with targets of $135 and $128 on August 21 and September 18, respectively. The consensus among analysts indicates a positive outlook for AEP, with a mean price target above the current trading price.

About American Electric Power

American Electric Power Company, Inc. is a public utility holding company based in Columbus, OH. It generates, transmits, and distributes electricity to retail and wholesale customers across the United States. AEP operates through various segments, including Vertically Integrated Utilities and Transmission and Distribution Utilities, making it a key player in the regulated electric utility industry.

Bottom Line

Investors should keep an eye on AEP as it approaches its next earnings date on October 29, 2026. With Keybanc's recent upgrade, there is a renewed interest in the stock, which is currently trading below the new price target. Further institutional filings and insider activities may provide additional insights into AEP's market performance.