American Electric price target lowered to $96 from $103 at BMO Capital

BMO Capital lowered the firm’s price target on American Electric to $96 from $103 but keeps an Outperform rating on the shares. The analyst notes that the LPSC voted to approve SWEPCO’s March settlement with modest modifications and also approved the flex-up capacity option, which allows SWEPCO to move forward with the full 999MW/$2.2bn of renewables projects/capex, the analyst tells investors in a research note. This is a significant positive for the stock as it begins to address the regulatory and project risk for the story, the firm adds, stating that it would be a buyer of the stock here after its 7% relative retracement due to increased regulatory uncertainty over the last month.