Southern Co’s Future Outlook: A Bullish Turn Analyst Upgrades Southern Co Rating, Citing Premium Justification

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By Ronald Tech

Southern Co’s Market Performance

Shares of Southern Co (NYSE: SO) experienced notable volatility in early trading on Thursday.

Bullish Outlook for Southern Co

BMO Capital Markets projects that the company’s intensified focus on regulatory health, robust balance sheet, and execution will fuel its relative performance for 2024.

Analyst’s Positive Shift

James Thalacker, the Southern Co analyst, upgraded the company’s rating from Market Perform to Outperform, elevating the price target from $72 to $77.

Thalacker justified the upgrade by stating that Southern Co’s profile supports one of the highest premiums in the industry, despite its strong show in 2023.

Regulatory Focus and Capital Opportunities

The primary regulatory focus for the year will be Southern Co’s GA IRP, with a decision expected by April, according to the analyst.

Management indicated over $45 billion of identified opportunities, anticipating additional capital prospects supported by a robust regional economy. They showcased a long-term 5-7% EPS growth rate, providing visibility and a solid footing.

Thalacker emphasized that the company’s quiet regulatory calendar in 2024 positions it favorably for investors seeking regulatory reassurance, while other jurisdictions experience a decline.

SO Price Action

Shares of Southern Co dipped by 0.07% to $71.78 at the time of publication on Thursday.

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