Analyst Ross Fowler from Bank of America Securities reiterated a Hold rating on Southern Co and increased the price target to $102.00 from $99.00.
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Ross Fowler’s rating is based on several factors, including Southern Company’s expected Q3 2025 operating earnings of $1.50 per share, which aligns with the company’s guidance but slightly below the consensus expectation of $1.52 per share. The company’s performance is driven by higher rates and usage, counterbalanced by increased operating, maintenance, depreciation, and interest expenses. Despite these challenges, Southern Company is anticipated to maintain its 2025 earnings per share guidance of $4.20 to $4.30 and its projected EPS growth of 5% to 7% based on the 2024 base year.
Additionally, Fowler expects Southern Company to provide strategic updates in its Q3 report, including its financing plans, large load customer pipeline, and regulatory proceedings in various states. While a comprehensive update on the capital plan is not anticipated, some clarity on future spending may be provided. The price objective for Southern Company has been adjusted to $102 from $99, reflecting updated peer group P/E multiples. These factors contribute to the Hold rating, as the stock’s current price is close to the revised price objective.
According to TipRanks, Fowler is a 5-star analyst with an average return of 9.5% and a 68.82% success rate. Fowler covers the Utilities sector, focusing on stocks such as Eversource Energy, Alliant Energy, and Sempra Energy.
In another report released on October 10, UBS also maintained a Hold rating on the stock with a $104.00 price target.