American Electric Power Company, Inc. (AEP) saw its price target raised by Morgan Stanley to $125 from $120, with an Overweight rating. This comes as the firm updates its view on Regulated & Diversified Utilities in North America, noting utilities lagged the S&P’s return in December.

AEP’s unit will purchase a substantial portion of its option for solid oxide fuel cells in a $2.65 billion deal, part of plans to develop a fuel cell power generation facility. AEP originally signed an agreement in 2024 with Bloom Energy for 100 MW of solid oxide fuel cells, with an option for an additional 900 MW.

AEP secures a long-term offtake arrangement with an unnamed customer to take the full output of the planned fuel cell facility near Cheyenne, Wyoming. The offtake agreement is subject to conditions being met by Q2 2026, and financial compensation will cover capital and costs if not satisfied.

American Electric Power Company, Inc. (AEP) is an electric utility holding company serving over five million retail customers across various states. While AEP has investment potential, some believe certain AI stocks offer greater upside potential and less downside risk. Check out our report on the best short-term AI stock.

Read more at Yahoo Finance: American Electric Power Company, Inc. (AEP) in Focus as Morgan Stanley Reassesses Regulated Utilities