Southern Company price target lowered to $70 from $72 at BMO Capital

BMO Capital analyst James Thalacker lowered the firm’s price target on Southern Company to $70 from $72 and keeps a Market Perform rating on the shares. The company has reached a stipulation with the PSC Staff and other key interveners regarding the reasonableness, prudence, and cost recovery for Vogtle which is “consistent” with its long-term planning assumptions and if approved, provides an important de-risker, the analyst tells investors in a research note. Southern Co appears “well positioned to recapture premium valuation” multiple as nuclear construction nears completion, though BMO prefers to wait for completion of key milestones for Vogtle 3 and visibility on Unit 4 progress before becoming more constructive, the firm added.