UPDATE: Jefferies Lowers PT on American Electric Power To $39

Jefferies & Company has published a research report on American Electric Power AEP after the company report a 2Q earnings beat of $0.73 vs. Jefferies' estimate of $0.70. In the report, Jefferies writes, "AEP expects to receive $900 million from TCC customers due to the recent judgment from the Texas Supreme Court to reverse a PUCT decision, which originally denied the utility from recovering costs related to stranded costs. Management believes they will receive this money in 2012 and plan to retire some debt at TCC and dividend up the remaining cash to the parent. At the parent, AEP plans to use the proceeds to fund construction projects at several AEP companies." Jefferies has lowered AEP's price target from $39.50 to $39 and maintains its Hold rating. American Electric Power closed Friday at $36.86.