Wells Fargo initiated coverage of Southern Company (SO) with an Equal Weight rating and $97 price target The firm launched coverage of the powers and utilities group with 19 Overweights and 14 Equal Weights. Wells prefers names where with growth prospects “actually driving earnings higher” or stocks that are trading at valuation levels “not necessarily reflecting fundamentals.” Wells added Constellation (CEG) to its “Best Idea List” for power and Sempra (SRE) to its “Best Idea List” for utilities. Utilities are “materially undervalued” as a “perfect storm of tailwinds” is hitting the group that is much more structural in nature than cyclical, contends the firm.
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Read More on SO:
- Southern Company resumed with a Sector Perform at RBC Capital
- Southern Company price target raised to $99 from $92 at Morgan Stanley
- Southern Company initiated with a Neutral at BTIG
- Southern Company downgraded to Neutral from Buy at Ladenburg
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