Southern Co. stock price target raised to $102 by BMO Capital

Investing.com - BMO Capital raised its price target on Southern Co . (NYSE:SO) to $102.00 from $98.00 on Tuesday, while maintaining an Outperform rating on the utility company’s stock. The stock, currently trading near its 52-week high of $95.29, has delivered a robust 19.7% return over the past year. According to InvestingPro analysis, Southern Co. appears to be trading above its Fair Value.

The firm expects Southern Co. to report second-quarter earnings of $0.87 per share, slightly below the current FactSet/Bloomberg consensus estimate of $0.90 when the company releases results on July 31. The utility giant, with a market capitalization of $104.7 billion, has maintained its dividend payments for 55 consecutive years, currently offering a 3.12% yield.

BMO Capital noted that quarterly results are likely to be overshadowed by Southern Co.’s expected refresh of its capital plan, with the company anticipated to update both its capital and financing plans.

The investment firm views Southern Co.’s regulatory calendar as "largely de-risked" following the approvals of the alternate rate plan and Integrated Resource Plan (IRP) for Georgia Power earlier in July.

Despite Southern Co. trading at a premium to peers, BMO Capital believes the company’s "liquid profile, quiet regulatory calendar, and leverage to economic development" should continue to support relative outperformance as investors seek defensive exposure.

In other recent news, Southern Company has announced a quarterly dividend of 74 cents per share, maintaining its long-standing tradition of consistent dividend payments for 78 consecutive years. The company also appointed David P. Poroch as Executive Vice President and Chief Financial Officer, effective July 31, with Daniel S. Tucker stepping down but continuing as a senior advisor until his retirement on October 1. Additionally, Southern Company has appointed Hans Brown as Executive Vice President and Chief Information Technology Officer, effective July 31, to lead its technology strategy and digital transformation efforts. Barclays (LON:BARC) has raised its price target for Southern Company to $91.00, citing the incorporation of $10-15 billion of incremental capital into its future plans. The company has also elected John M. Turner, Jr., CEO of Regions Financial Corporation (NYSE:RF), to its Board of Directors, effective September 1, 2025. These developments highlight Southern Company’s ongoing efforts in leadership restructuring and financial planning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.