Gerard Klauer Cuts AEP to 'Underperform'

Analyst Michael Worms says the downgrade is based on the potential for an equity deal overhanging the shares

American Electric Power (AEP ) shares fell after Gerard Klauer downgraded them to underperform from neutral. On Friday, the company posted fourth-quarter earnings per share from continuing operations of 52 cents, vs. 32 cents a year ago, on a 31% revenue rise. The utility company cut 2003 EPS guidance to $2.50 to $2.70 and lowered its dividend.

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