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American Electric Power (NASDAQ:AEP) and Pinnacle West Capital (PNW) are little changed in Thursday’s trading as Ladenburg Thalmann upgraded the utility stocks.
AEP (AEP) is raised to Neutral from Sell based on potential accretion of $0.25-$0.40/share associated with the sale of a 20% interest in its AEP Holdco segment and other restructuring opportunities.
Although AEP (AEP) has indicated it will retain its Pioneer and TranSource transmission investments, the bank believes it would benefit from accretion associated with a partial sale of its AEP Transmission Holdco segment.
Ladenburg also raises Pinnacle West (PNW) to Buy from Neutral, citing an assumed EPS benefit in 2026 from approval of the ACC Modification of Test Year Rules docket.
The bank says its latest model has Arizona Public Service Co. consistently under-earning through 2027 and eventually earning its authorized return in 2028 with…
