American Electric Power Co. (AEP) Stock Price Prediction: 2025, 2026, 2030

The post American Electric Power Co. (AEP) Stock Price Prediction: 2025, 2026, 2030 by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.

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American Electric Power Co. (AEP) delivers regulated electrical power to 5.6 million customers in 11 states and also makes money from commercial and industrial clients. However, residential growth has slowed recently, and only its commercial segment has been growing due in part to artificial intelligence data centers.

In this article, we’ll look at Wall Street sentiment, multiyear price forecasts, and the key factors that are playing a critical role in AEP’s path going forward.

Current Stock Overview

Market Cap: $66.11 billion

Trailing P/E Ratio: 18.08

Forward P/E Ratio: 19.68

1-Year Return: 28%

2025 YTD: 34%

AEP has a consensus Hold rating from 23 analysts, according to Benzinga. The average price target is $114.64 per share. The highest price target is $139, and the lowest is $83. The three most recent ratings suggest a near-term average target of $130. 

Quick Snapshot Table of Predictions & Methodology for Forecasting

Bull & Bear Case

AEP has a vast customer base and multiple revenue streams, but starting new plants requires significant capital before any upside. 

Bull Case

• AEP has a vast 28-gigawatt pipeline backed by customer agreements, which can translate into higher revenue.
• Some of AEP’s customers are AI data centers, and its vast pipeline suggests that it can gain more market share in the industry.
• AEP has a diversified customer base that includes 5.6 million residential customers in 11 states, and that doesn’t include its other client segments.

Bear Case

• The increasing threat of severe storms in the Midwest and Southern regions can lead to high repair costs and put more pressure on American Electric Power’s balance sheet. 
• The 28 gigawatt pipeline requires $72 billion over five years to get it ready, which can put the company deeper into debt and reduce cash flow due to higher interest payments.
• AEP’s financial results partially depend on commodity prices, which the company does not control, adding more uncertainty to the stock’s long-term performance. 

Stock Price Prediction for 2025

CoinCodex projects AEP stock posting some gains this year, but there’s a chance it loses value based on the lowest price target. Any positive developments around the company’s pipeline and commercial customer growth can inch the stock higher. 

Stock Price Prediction for 2026

CoinCodex projects some upside for AEP in 2026. AI tailwinds may boost the company’s commercial segment, and its pipeline may give it flexibility to serve more customers. AEP already has utilities in 11 states, which gives it the potential to expand in those areas.

Stock Price Prediction for 2030

CoinCodex projects AEP stock rallying in 2030. Partnerships with AI data centers may pan out and grow its commercial segment significantly. Moderate growth in the utility’s residential, industrial, and miscellaneous segments could also give the stock a boost. 

Investment Considerations

AEP is a relatively stable electric company that primarily serves residential and commercial customers. 

The utility’s infrastructure and miscellaneous segments generate additional revenue. The stock has a decent dividend yield above 3%, which may attract income investors.  

The post American Electric Power Co. (AEP) Stock Price Prediction: 2025, 2026, 2030 by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.