Truist Bullish on AEP as Data Center Demand Drives Growth Potential

Key Facts

1Truist analyst Richard Sunderland maintained a Buy rating on AEP while adjusting the price target to $145 from $148.

2Truist believes the pace of data center development could offer further upside surprises for the company.

As the surge in artificial intelligence infrastructure drives unprecedented electricity demand, utility providers are becoming central to the digital economy narrative. Truist analyst Richard Sunderland maintained a Buy rating on American Electric Power (AEP) while slightly adjusting the price target to $145 from $148. The firm believes the current pace of data center development could offer significant upside surprises for the company’s financial performance, reinforcing its strategic position within the utilities sector.

This bullish outlook aligns with broader industry trends where peers like NextEra Energy and Dominion Energy are pivoting to capture cloud computing demand; the utilities sector has gained approximately 12% year-to-date per market data. Comparing recent performance, Duke Energy's latest earnings report highlighted a surge in industrial demand specifically from data centers, validating Truist's thesis for AEP's growth trajectory (Source: Duke Energy Q1 2026 Earnings).

AEP shares closed at $96.45 (close May 29, 2026), suggesting substantial potential upside toward the $145 target. Investors should monitor the upcoming U.S. Core PCE Price Index data on May 28, as inflation and interest rate trends remain critical catalysts for capital-intensive utility stocks.