Morgan Stanley Raises Target Price for American Electric Power

Analyst sees potential 9% upside for the utility company's stock

Mar. 21, 2026 at 1:21pm

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Morgan Stanley has increased its target price for shares of American Electric Power (NASDAQ:AEP) from $133.00 to $137.00 and maintained an "overweight" rating on the stock. The investment bank believes the utility company's stock has potential upside of 9.02% from its previous close.

Why it matters

This positive outlook from a major Wall Street firm suggests that American Electric Power's business performance and growth prospects are viewed favorably by analysts. As one of the largest electric utilities in the U.S., AEP's stock price movement and analyst sentiment can have broader implications for the utility sector.

The details

In its research report, Morgan Stanley cited American Electric Power's diverse portfolio of power generation assets, including fossil fuels, natural gas, nuclear, and hydropower, as well as the company's increasing investments in renewable energy sources. The investment bank believes these factors position AEP well to navigate the ongoing transition in the U.S. electricity market.

  • Morgan Stanley issued its updated research report and target price on Friday, March 21, 2026.

The players

Morgan Stanley

A global financial services firm that provides investment banking, securities, wealth management and investment management services.

American Electric Power (AEP)

A major investor-owned electric utility headquartered in Columbus, Ohio, that generates, transmits and distributes electricity to retail customers across multiple states.

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The takeaway

This positive analyst outlook for American Electric Power reflects the company's diversified energy portfolio and its ability to adapt to the evolving electricity market. As a major utility, AEP's performance is an important indicator for the broader utility sector.