UPDATE: Jefferies Lowers PT on American Electric Power to $38.50 (AEP)

Jefferies is out with its report today on American Electric Power (NYSE: AEP), lowering its price target from $19 to $18.50.

In a note to clients, Jefferies writes, "We believe that AEP is a low risk, regulated company that should trade at a slight discount to the regulated utility group average. The company will face several challenging regulatory proceedings, particularly in Ohio, which may impact the 4-6% growth rate in 2012-14. Our price target of $38.50 (down from $39.00) is based on our 2012 EPS estimate of $3.15 in conjunction with an 12.3x P/E multiple."

At the time of posting, shares of AEP were trading pre-market at $36.20, up 1.03% from Tuesday's close.