AI's Impact on Power Demand: The AI boom is projected to require an additional 50 gigawatts of power capacity in the US, equivalent to the energy needs of 40 million homes, leading to increased electricity costs for consumers as utilities invest in infrastructure to meet this demand.
Risks for Utilities and Developers: Utilities face financial risks if tech companies back out of power agreements, potentially leading to stranded assets. Some utilities are implementing measures to ensure that developers bear the costs of unused power capacity.
Federal Support and Infrastructure Challenges: The federal government is providing financial support to utilities like AEP to upgrade transmission infrastructure, which is crucial for accommodating the surge in data center demands from major tech companies.
Market Dynamics and Future Outlook: The rapid growth in demand for electricity from data centers is reminiscent of past energy booms, raising concerns about whether supply can keep pace and the potential for financial repercussions if demand does not materialize as expected.
SO
$84.77+Infinity%1D
Analyst Views on SO
Wall Street analysts forecast SO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SO is 101.14 USD with a low forecast of 87.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast SO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SO is 101.14 USD with a low forecast of 87.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
14 Hold
1 Sell
Hold
Current: 84.440
Low
87.00
Averages
101.14
High
112.00
Current: 84.440
Low
87.00
Averages
101.14
High
112.00
RBC Capital
Stephen D'Ambrisi
Sector Perform
downgrade
$107 -> $99
2025-12-12
New
Reason
RBC Capital
Stephen D'Ambrisi
Price Target
$107 -> $99
2025-12-12
New
downgrade
Sector Perform
Reason
RBC Capital analyst Stephen D'Ambrisi lowered the firm's price target on Southern Company to $99 from $107 and keeps a Sector Perform rating on the shares. The company's recently announced settlement in the GA All-Source RFP likely adds $4B to capital plan & explicitly ties large load additions to $1.7B in rate credits, the analyst tells investors in a research note. RBC adds however that despite the 4% underperformance since late October, the firm remains at neutral pending more clarity on a potentially politically noisy 2026.
KeyBanc
KeyBanc
Underweight
downgrade
$87 -> $76
2025-12-12
New
Reason
KeyBanc
KeyBanc
Price Target
$87 -> $76
2025-12-12
New
downgrade
Underweight
Reason
KeyBanc lowered the firm's price target on Southern Company to $76 from $87 and keeps an Underweight rating on the shares. While the stock's slight premium remains supported by Southern's strong regulatory construct in its territories, particularly in GA, the firm believes the recent three-year stay-out and the absence of new rates in its largest jurisdiction will make it difficult for Southern to rebase/guide higher for its EPS growth rate. As a result, KeyBanc thinks Southern's growth opportunities are more limited than the market is currently pricing in, and that growth rate revisions are unlikely in the near term. Consequently, it still sees Southern as an unattractive source of funds and expects its premium to compress further relative to peers.
TD Cowen
Shelby Tucker
Buy
maintain
$44 -> $45
2025-12-11
New
Reason
TD Cowen
Shelby Tucker
Price Target
$44 -> $45
2025-12-11
New
maintain
Buy
Reason
TD Cowen analyst Shelby Tucker raised the firm's price target on Southern Company to $45 from $44 and keeps a Buy rating on the shares. The firm views the settlement as a positive for the company, highlighting both the continued constructive nature of Georgia's PSC and the focus placed on bill affordability given the terms of the settlement. The PSC is scheduled to vote on final approval December 19, 2025.
Mizuho
Anthony Crowdell
Neutral
downgrade
$97 -> $88
2025-12-11
New
Reason
Mizuho
Anthony Crowdell
Price Target
$97 -> $88
2025-12-11
New
downgrade
Neutral
Reason
Mizuho analyst Anthony Crowdell lowered the firm's price target on Southern Company to $88 from $97 and keeps a Neutral rating on the shares. The firm cites current market multiples for the target cut. Mizuho views the Georgia Power agreement as a "clear positive" for Southern Company and is surprised by the lack of a market reaction.
About SO
The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
