We are reiterating our BUY rating on American Electric Power Co. Inc. (NYSE: AEP) with a target price of $140, driven by sector rotation and fundamental growth. The company is one of the largest U.S. electricity providers, with operations in 11 states. The broad service range can steady earnings and reduce the impacts of unfavorable temperature-related demand. AEP provides electricity to several fast-growing states such as Texas, Tennessee, and Virginia, as well as in both cold- and warm- weather service regions. The utility has had solid sequential earnings growth and a focus on expanding transmission. The shares have also tended to follow historical sector trends wherein utilities have traded positively on news of declining rates.