Seaport Global upgrades American Electric Power to Buy on strong load growth outlook

Seaport Global Securities upgraded American Electric Power (AEP) from Neutral to Buy, citing strong load growth prospects and a modest valuation premium compared to peers. The upgrade reflects optimism about AEP's rural service areas benefiting from rising data center demand and favorable regulatory outcomes in states like West Virginia and Kentucky. Increased transmission spending in Ohio, Texas, and Indiana is expected to boost earnings beyond 2027, despite some regulatory challenges. The $145 price target implies a 10% premium on 2028 earnings multiples, set ahead of AEP's Q1 2026 earnings report.