TD Cowen Reiterates Buy on American Electric Power (AEP), Cites Improving Execution

American Electric Power Company, Inc. (NASDAQ:AEP) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

On February 20, TD Cowen analyst Shelby Tucker raised the price recommendation on American Electric Power Company, Inc. (NASDAQ:AEP) to $141 from $137. The analyst reiterated a Buy rating on the stock. The firm said AEP continues to show a strong pipeline of investment opportunities across its service areas. It also noted that the company’s execution has been improving, with steady progress in its ability to generate better returns on equity.

During the Q4 2025 earnings call, Chairman, President, and CEO William Fehrman said AEP remains one of the fastest-growing pure-play electric utilities. He said the company’s presence in high-growth regions, along with continued infrastructure investment, has played a major role in driving its performance. Fehrman also highlighted steps AEP has taken to support future growth. The company secured agreements with leading gas turbine manufacturers, locking in more than 10 gigawatts of capacity. He said AEP also formed a long-term partnership with Quanta Services to help expand and speed up development of its 765 kV transmission network.

Financially, the company delivered solid results. Fehrman said AEP reported operating earnings of $1.19 per share for the fourth quarter, bringing full-year 2025 operating earnings to $5.97 per share. That result came in above the high end of the company’s guidance. He also noted that AEP raised its quarterly dividend to $0.95 per share in October and delivered a total shareholder return of 29% for the year.

American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Its subsidiaries provide electricity generation, transmission, and distribution services to more than five million customers across several US 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: 14 Best Real Estate Stocks to Buy According to Hedge Funds and 14 Best Warren Buffett Dividend Stocks to Buy

Disclosure: None.