Southern Co. Stock Upgraded to Sector Weight by KeyBanc
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SO?
Source: seekingalpha
- Rating Upgrade: KeyBanc upgraded Southern Co. (SO) from Underweight to Sector Weight, indicating that after underperforming for the past 12 months, the stock has lost its historical premium and is now trading in line with the large-cap peer average of 19.2x.
- Earnings Growth Outlook: The company recently raised its long-term earnings per share compound annual growth rate to as high as 8%, forecasting a 10% sales growth by 2030, driven by accelerating large load additions that enhance profitability.
- Regulatory Lag Impact: Analysts noted that the rate base growth is now projected at 9%, indicating a modest 100 basis points regulatory lag, suggesting that the growth targets in key Georgia and Alabama territories will help mitigate regulatory pressures elsewhere.
- Market Positioning Improvement: The new growth targets align Southern Co. more closely with its higher-growing large-cap peers, indicating that the company is set to better align with industry trends and enhance its competitive position in the market.
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Analyst Views on SO
Wall Street analysts forecast SO stock price to fall
17 Analyst Rating
4 Buy
11 Hold
2 Sell
Hold
Current: 96.790
Low
45.00
Averages
92.34
High
109.00
Current: 96.790
Low
45.00
Averages
92.34
High
109.00
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.
Southern Co. Stock Upgraded to Sector Weight by KeyBanc
- Rating Upgrade: KeyBanc upgraded Southern Co. (SO) from Underweight to Sector Weight, indicating that after underperforming for the past 12 months, the stock has lost its historical premium and is now trading in line with the large-cap peer average of 19.2x.
- Earnings Growth Outlook: The company recently raised its long-term earnings per share compound annual growth rate to as high as 8%, forecasting a 10% sales growth by 2030, driven by accelerating large load additions that enhance profitability.
- Regulatory Lag Impact: Analysts noted that the rate base growth is now projected at 9%, indicating a modest 100 basis points regulatory lag, suggesting that the growth targets in key Georgia and Alabama territories will help mitigate regulatory pressures elsewhere.
- Market Positioning Improvement: The new growth targets align Southern Co. more closely with its higher-growing large-cap peers, indicating that the company is set to better align with industry trends and enhance its competitive position in the market.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
Mississippi Power Appoints New VP of Customer Solutions
- Executive Appointment: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, where he will oversee marketing, energy efficiency, and customer service teams to enhance customer experience and support growth across the service territory.
- Extensive Experience: With over 26 years in communications and customer strategy, Carmichael previously served as Vice President of Corporate Affairs at Georgia Power, managing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his deep industry expertise.
- Community Engagement: Carmichael has a strong history of community involvement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, which reflects his commitment to community service and will strengthen the company's connection with its customers.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, providing a solid foundation for his leadership role at Mississippi Power.
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Mississippi Power Appoints New VP of Customer Solutions
- New Vice President: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, overseeing marketing, energy efficiency, and customer service teams to enhance customer experience and support growth in service areas.
- Extensive Industry Experience: With over 26 years in communications and customer strategy, Carmichael previously served as Vice President of Corporate Affairs at Georgia Power, managing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his leadership capabilities in the industry.
- Community Involvement: Carmichael has a strong history of community engagement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, reflecting his commitment and responsibility towards local communities.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, equipping him with solid professional knowledge and leadership skills.
See More
Mississippi Power Appoints New VP of Customer Solutions and Corporate Communications
- Executive Appointment: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, aiming to enhance customer experience and support growth across its service territory.
- Extensive Experience: With over 26 years in communications and customer strategy, Carmichael previously served as VP of Corporate Affairs at Georgia Power, overseeing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his deep industry background.
- Community Involvement: Carmichael has a strong history of community engagement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, reflecting his commitment to local community development.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, indicating his dedication to ongoing professional development.
See More
Trump Pushes Energy Commitment from Data Centers
- Political Commitment: In his State of the Union address, Trump mentioned securing a pledge from major tech companies to supply power for data centers, although details remain unclear, this could impact future electricity supply and cost structures.
- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
- Investment Opportunities: Wells Fargo has named Constellation Energy as its top pick among independent power producers, projecting a 40% stock price increase, while other independent producers like NRG and Talen are also viewed positively, indicating optimistic sentiment towards data center-related investments.
See More
Southern Co. Stock Upgraded to Sector Weight by KeyBanc
- Rating Upgrade: KeyBanc upgraded Southern Co. (SO) from Underweight to Sector Weight, indicating that after underperforming for the past 12 months, the stock has lost its historical premium and is now trading in line with the large-cap peer average of 19.2x.
- Earnings Growth Outlook: The company recently raised its long-term earnings per share compound annual growth rate to as high as 8%, forecasting a 10% sales growth by 2030, driven by accelerating large load additions that enhance profitability.
- Regulatory Lag Impact: Analysts noted that the rate base growth is now projected at 9%, indicating a modest 100 basis points regulatory lag, suggesting that the growth targets in key Georgia and Alabama territories will help mitigate regulatory pressures elsewhere.
- Market Positioning Improvement: The new growth targets align Southern Co. more closely with its higher-growing large-cap peers, indicating that the company is set to better align with industry trends and enhance its competitive position in the market.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
Mississippi Power Appoints New VP of Customer Solutions
- Executive Appointment: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, where he will oversee marketing, energy efficiency, and customer service teams to enhance customer experience and support growth across the service territory.
- Extensive Experience: With over 26 years in communications and customer strategy, Carmichael previously served as Vice President of Corporate Affairs at Georgia Power, managing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his deep industry expertise.
- Community Engagement: Carmichael has a strong history of community involvement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, which reflects his commitment to community service and will strengthen the company's connection with its customers.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, providing a solid foundation for his leadership role at Mississippi Power.
See More
Mississippi Power Appoints New VP of Customer Solutions
- New Vice President: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, overseeing marketing, energy efficiency, and customer service teams to enhance customer experience and support growth in service areas.
- Extensive Industry Experience: With over 26 years in communications and customer strategy, Carmichael previously served as Vice President of Corporate Affairs at Georgia Power, managing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his leadership capabilities in the industry.
- Community Involvement: Carmichael has a strong history of community engagement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, reflecting his commitment and responsibility towards local communities.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, equipping him with solid professional knowledge and leadership skills.
See More
Mississippi Power Appoints New VP of Customer Solutions and Corporate Communications
- Executive Appointment: Mississippi Power's board has elected Fredie Carmichael as Vice President of Customer Solutions and Corporate Communications, effective March 16, aiming to enhance customer experience and support growth across its service territory.
- Extensive Experience: With over 26 years in communications and customer strategy, Carmichael previously served as VP of Corporate Affairs at Georgia Power, overseeing branding, advertising, and media relations for approximately 8,000 employees and 2.8 million customers, showcasing his deep industry background.
- Community Involvement: Carmichael has a strong history of community engagement in Mississippi, having served as founding chairman of Young Professionals of Meridian and on the Lauderdale County Board of Education, reflecting his commitment to local community development.
- Educational Background: He holds a communications degree from Mississippi State University and has completed the True South Economic Development Program at The University of Southern Mississippi and the Executive Leadership Program at Cornell University, indicating his dedication to ongoing professional development.
See More
Trump Pushes Energy Commitment from Data Centers
- Political Commitment: In his State of the Union address, Trump mentioned securing a pledge from major tech companies to supply power for data centers, although details remain unclear, this could impact future electricity supply and cost structures.
- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
- Investment Opportunities: Wells Fargo has named Constellation Energy as its top pick among independent power producers, projecting a 40% stock price increase, while other independent producers like NRG and Talen are also viewed positively, indicating optimistic sentiment towards data center-related investments.
See More
