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[Brokerage Focus] Morgan Stanley gives American Electric Power (AEP) an "overweight" rating, indicating that the sale of shares in the transmission business effectively optimizes the balance sheet

金吾财讯2025-01-13

Jinwu Financial News |Morgan StanleyAccording to the research report,American Electric Power(AEP) agreed to sell a stake in its transmission business to a strategic partner enterprise of KKR and PSP Investments. The bank believes the transaction will immediately increase earnings per share, solve the 52% equity demand in the U.S. power plan, ease the significant balance sheet backlog, and reduce the risk of earnings per share execution. Morgan Stanley expects American Power to resolve revenue growth rate and range issues after the transaction is completed, giving American Power an "overweight" rating and a target price of $103.

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