Ryan Levine, an analyst from Citi, maintained the Buy rating on Southern Co (SO – Research Report). The associated price target is $104.00.
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Ryan Levine has given his Buy rating due to a combination of factors influencing Southern Co’s potential growth and financial performance. The company is experiencing a shift in demand, with portions of Georgia Power’s large load pipeline expected to materialize sooner than anticipated, which could lead to accelerated capital deployment and earnings per share growth. Additionally, the finalization of the 100MW+ tariff framework by the Georgia Public Service Commission provides regulatory certainty, encouraging further growth in the pipeline.
Furthermore, Southern Co is preparing to file for 13GW of new energy resources in Georgia, which includes a significant portion of tech-agnostic procurement. This move, along with the upcoming Georgia rate case focusing on affordability and storm recovery, positions the company favorably for future developments. Despite a modest deceleration in Q1 due to temporary factors, strong load growth continues, particularly in data centers, indicating sustained demand. The company’s Q1 performance exceeded expectations, driven by regulated investments and favorable weather, and the guidance for Q2 suggests continued strength, supported by substantial inflows from fuel cost recovery and storm cost mechanisms.
In another report released on May 1, Scotiabank also reiterated a Buy rating on the stock with a $98.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SO in relation to earlier this year.