Friday, April 17, 2009

Another Utility Upgrade: American Electric Power (AEP)

Following Wednesday's upgrade of Allegheny Energy (AYE) by Barclays comes yesterday's JPMorgan's move on AEP, the second firm to upgrade the stock this month.

Our renewed interest in the group was explained Monday's "Utilities: Getting Ready for the Up Move that Follows the Next Down Move" .


American Electric Power (AEP Quote) upgraded at JPMorgan to Overweight from Neutral. Believe sharp valuation discount vs. peers is unwarranted. Note stable business outlook, improved balance sheet and relatively safe dividend. Price target at $32.