Colder Forecasts and Energy Demand: The Northern Hemisphere is expected to experience colder weather, potentially increasing heating demand and electricity prices due to a weakening polar vortex, particularly affecting the U.S., Europe, and Asia.
Utilities ETFs as Investment Opportunities: Investors are looking at utilities-focused ETFs, such as the Utilities Select Sector SPDR Fund (XLU) and Vanguard Utilities Index Fund ETF (VPU), which could benefit from seasonal demand spikes and provide stability amid market volatility.
Renewable Energy ETFs: The iShares Global Clean Energy ETF (ICLN) may attract interest due to its focus on renewable energy sources, especially if severe weather highlights the fragility of energy grids.
Defensive and Opportunistic Trade: Utilities ETFs present a combination of defensive investment and potential for growth, as rising power demand from AI infrastructure and cold weather could lead to significant performance during the winter season.
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 92.34 USD with a low forecast of 45.00 USD and a high forecast of 109.00 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.
17 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 92.34 USD with a low forecast of 45.00 USD and a high forecast of 109.00 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
11 Hold
2 Sell
Hold
Current: 89.150
Low
45.00
Averages
92.34
High
109.00
Current: 89.150
Low
45.00
Averages
92.34
High
109.00
Morgan Stanley
David Arcaro
Underweight
maintain
$81 -> $85
2026-01-21
New
Reason
Morgan Stanley
David Arcaro
Price Target
$81 -> $85
AI Analysis
2026-01-21
New
maintain
Underweight
Reason
Morgan Stanley analyst David Arcaro raised the firm's price target on Southern Company to $85 from $81 and keeps an Underweight rating on the shares. The firm is updating its Regulated & Diversified Utilities / IPPs in North America under its coverage, noting utilities underperformed the S&P's return in December, the analyst tells investors.
Wells Fargo
Shahriar Pourreza
Equal Weight -> Underweight
downgrade
$84
2026-01-20
New
Reason
Wells Fargo
Shahriar Pourreza
Price Target
$84
2026-01-20
New
downgrade
Equal Weight -> Underweight
Reason
Wells Fargo analyst Shahriar Pourreza downgraded Southern Company to Underweight from Equal Weight with an $84 price target.
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Wells Fargo
Equal Weight -> Underweight
downgrade
$97 -> $84
2026-01-20
New
Reason
Wells Fargo
Price Target
$97 -> $84
2026-01-20
New
downgrade
Equal Weight -> Underweight
Reason
Wells Fargo downgraded Southern Company to Underweight from Equal Weight with a price target of $84, down from $97. The downgrade does not reflect execution concerns, as management is viewed as among the best in the industry and supported by a strong load growth pipeline in the Southeast, particularly Georgia, the analyst tells investors in a research note. Instead, it reflects rising political and regulatory uncertainty in Georgia following last year's election results, with additional noise expected into the 2026 cycle, Wells Fargo says.
UBS
Neutral
downgrade
$98 -> $94
2025-12-17
Reason
UBS
Price Target
$98 -> $94
2025-12-17
downgrade
Neutral
Reason
UBS lowered the firm's price target on Southern Company to $94 from $98 and keeps a Neutral rating on the shares.
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.
