Citi Downgrades American Electric Power Co Inc (AEP)

Citi Investment Research is downgrading shares of American Electric Power Co Inc AEP to Hold, and cut its price target to $38 from $41. In a note sent to clients, Citi writes, "We are downgrading our rating on AEP shares to Hold (2M) from Buy (1M). Our ratings change is predicated on several upcoming Ohio regulatory matters that should continue to drive headline risk. Our new 12 month target price of $38/share incorporates a 2 ½ multiple point P/E discount to defensive peers. Our discount is based on both AEP's historical 2.0x discount to utility peers, and an additional discount that reflects IA and environmental cost risks as noted below." Shares of AEP lost 28 cents yesterday to close at $35.67, a loss of 0.8%.