American Electric Power (AEP) Plans $70 Billion Capital Expenditures Through 2029, Analyst Boosts Target

American Electric Power Company, Inc. (NASDAQ:AEP) ranks among the best performing utilities stocks to buy now. Ladenburg Thalmann maintained its Neutral rating on American Electric Power Company, Inc. (NASDAQ:AEP) and boosted its price target from $109 to $112 on August 18.

The price target rise is in line with AEP’s larger capital expenditures, which were hinted at during the company’s earnings call for the second quarter. The firm raised its earnings per share projections for the utility based on this enlarged investment plan.

In an official statement, American Electric Power Company, Inc. (NASDAQ:AEP) stated that it anticipates raising its capital spending plan for 2025–2029 by $16 billion, to a total of $70 billion.

According to Ladenburg Thalmann, higher transmission spending in Texas accounts for about 45% of the $16 billion increase that is expected. Of the additional capital expenditure, 32% is attributable to higher generation spending in Oklahoma and Indiana.

American Electric Power Company, Inc. (NASDAQ:AEP), with its headquarters in Columbus, Ohio, provides dependable and reasonably priced power to 5.6 million consumers in 11 states.

While we acknowledge the potential of AEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.