RBC Capital analyst Shelby Tucker upgraded American Electric to Outperform from Sector Perform with a price target of $103, up from $96. The analyst cites the company's "robust rate base" and earnings growth, adding that the risk for a lower return-on-equity in 2020 is limited with transmission utilities already operating in line with the new FERC rates. Tucker contends that American Electric offers the best value among the peer group of "quality utilities".

Scotiabank analyst Andrew Weisel lowered the firm's price target on American Electric to $86 from $92 and keeps an Outperform rating on the shares. Interest rates remain stubbornly high, which has weighed on the sector's valuation, the analyst tells investors. The firm views both Canadian and North American utility stocks as undervalued, but sees upside for Canadian utility stocks following their steady underperformance compared to its U.S. peers. Fundamentally, Scotiabank remains bullish on the group's long-term earnings outlook given the tailwinds driving its strong rate base growth.