After American Electric (AEP) Power announced the sale of a minority equity interest in its transmission assets as consortium formed by KKR and PSP will acquire a 19.9% ownership stake at the Ohio and I&M transmission companies for $2.82B, Morgan Stanley notes that the deal is immediately accretive to EPS and addresses 52% of the equity needs in AEP’s plan, “alleviating a major balance sheet overhang and lowering EPS execution risk.” The firm, which expects the company to address the earnings growth rate and range upon closing of the deal, has an Overweight rating and $103 price target on AEP shares.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AEP:
- American Electric price target lowered to $100 from $108 at BMO Capital
- American Electric Power’s Strategic Partnership with KKR and PSP
- American Electric Power Rises After KKR, PSP Take 20% Stake in Two Units
- KKR, PSP Investments acquire minority stake in two American Electric companies
- American Electric to sell 19.9% equity interest in two Transcos for $2.82B