Southern Co Analyst Upgrade: A Premium Outlook – Southern (NYSE:SO) Analyzing Southern Co: A Positive Market Shift

By: Alex Freidmen

Despite volatile early trading, Southern Co SO has caught the favorable attention of BMO Capital Markets.

The company’s focus on regulatory health, robust balance sheet, and successful execution are anticipated to propel its performance in 2024, as per BMO Capital Markets.

Analyst Upgrade: James Thalacker has upgraded Southern Co’s rating from Market Perform to Outperform, concurrently increasing the price target from $72 to $77.

Evaluating the Outlook: Although seen as one of the top performers in 2023, Southern Co has untapped potential. Thalacker emphasized its profile as one that “justifies one of the highest premiums in the group” in the upgrade note.

Thalacker highlighted, “The primary regulatory focus for the year will be the company’s GA IRP where they requested a decision by April.”

Furthermore, with management indicating over $45 billion in identified opportunities, additional capital opportunities are expected. Thalacker emphasized, “Underpinned by a strong regional economy as a differentiator, Southern Co’s position within their long-term 5-7% EPS growth rate provides a long runway of visibility.” He further stated, “When coupled with their quiet regulatory calendar in 2024, we believe investors will be willing to ascribe an even higher premium to SO’s jurisdictions.”

Price Action: Shares of Southern Co had decreased by 0.07% to $71.78 at the time of publication on Thursday.

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