American Electric price target raised to $104 from $100 at BMO Capital

BMO Capital raised the firm’s price target on American Electric to $104 from $100 and keeps an Outperform rating on the shares. The firm is adjusting its sum-of-the-parts mark to-market model after AEP Texas filed an unopposed settlement agreement with the Public Utility Commission of Texas last week, the analyst tells investors in a research note. The settlement would grant AEP Texas a net combined distribution and transmission rate increase of about $70M compared to about $130M net revenue increase requested in the company’s original request, BMO adds.