As previously reported, BofA analyst Ross Fowler upgraded American Electric (AEP) to Buy from Underperform with a price target of $104, up from $98, following the announcement of a 19.9% stake sale of its transmission holding company assets for $2.8B and appointment of Trevor Mihalik as CFO. The firm views the transmission asset sale as a direct replacement for external equity market needs and expects American to “continue to work toward clearing the perceived equity overhang in the near term,” says the analyst, who now models a “more manageable” $2B equity content issuance in the second half of 2025.
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