Analyst Note| Andrew Bischof, CFA, CPA |
We're reaffirming our $89 per-share fair value estimate after American Electric Power, or AEP, reported first-quarter operating earnings of $1.15 per share, up from $1.02 in the same year-ago period. Management reaffirmed its 2021 operating earnings guidance range to $4.55 to $4.75 and long-term 5% to 7% growth rate. We forecast AEP's full-year earnings will be near the midpoint of this range. After trading in deep 4-star territory, AEP now trades in line with our fair value estimate. We continue to view AEP as an attractive long-term holding.