Investment ProgramThe company's growth outlook, driven by an investment program focused on supply decarbonization and transmission, is expected to support a premium valuation as management successfully executes its strategy.
Regulatory OutcomesThe potential for improved regulatory outcomes, including better-than-expected load growth and cost efficiency, suggests a favorable risk/reward outlook with opportunities for earnings per share growth.
ValuationAEP shares are trading at a 7-8% discount to peers based on revised estimates, indicating potential for significant value gain and a favorable risk/reward profile.