Wells Fargo downgrades American Electric Power on lack of catalysts

Wells Fargo analyst Neil Kalton downgraded American Electric Power (AEP) to Equal Weight from Overweight with a price target of $99, down from $108. The analyst says a lack of catalysts plus a potential "strategic hiccup" with the Kentucky Power sale to Algonquin Power (AQN) being in jeopardy in warrants to a move to the sidelines. The company has an average balance sheet relative to peers, which argues against a premium, the analyst tells investors in a research note.