Mizuho Upgrades Southern Co. (SO) to Outperform

Mizuho analyst Anthony Crowdel upgraded Southern Co. (NYSE: SO) from Neutral to Outperform with a price target of $104.00 (from $89.00).

The analyst comments: "We are upgrading SO to Outperform from Neutral, as we believe the GPSC election noise is overblown, and even with the recent move in the stock, still presents an attractive valuation for a fully regulated story growing at 8% (possibly more). While investors will continue to focus on the political noise, we believe growth will drown out this noise and remind investors that the next GP rate case is in 2028. SO has historically traded at one of the higher P/Es in the sector and with this quarterly update we expect the march toward the mid-double digit premium will begin. What we like about SO vs. other 8%+ growers is: 1) 90% fully regulated, 2) not dependent on one customer, 3)operate in a vertically integrated world, and 4)Baa1 balance sheet. We update our PT to $104 based on higher estimates and expectations taking our P/E premium from 5% to 15%."

For an analyst ratings summary and ratings history on Southern Co. click here. For more ratings news on Southern Co. click here.

Shares of Southern Co. closed at $95.05 yesterday.

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