Southern Co. stock price target maintained at $100 by Jefferies on growth outlook
Investing.com
Published Jul 10, 2025 11:42AM ET
Investing.com - Jefferies has reiterated its Buy rating and $100.00 price target on Southern Co . (NYSE:SO), citing the utility's clear pathway for capital deployment and growth opportunities. The stock, currently trading at $92.75 and near its 52-week high of $94.45, has demonstrated strong momentum with a 21.2% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
The investment firm highlighted Southern's Georgia Integrated Resource Plan (IRP) stipulation, which creates opportunities to deploy $10-15 billion of upside capital while adding new growth avenues not previously considered in the company's outlook.
Jefferies noted that the approved 20% reserve margin and coal unit extensions provide immediate capacity relief as data center demand accelerates across Southern's service territory.
The firm emphasized Southern's regulatory stability, with its 11.9% return on equity (ROE) band remaining intact through 2028, providing visibility into the company's financial performance.
These factors collectively support Southern's projected 6-7% rate base growth extending beyond current planning horizons, according to Jefferies' analysis of the utility's long-term prospects. With revenue growth of 9.58% and a beta of just 0.37, Southern demonstrates both growth potential and stability. Discover more detailed insights and 8 additional ProTips for Southern Co. with a subscription to InvestingPro .
In other recent news, Southern Company reported its first-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $1.23, above the forecast of $1.19. The company also reported revenue of $7.78 billion, exceeding the projected $7.31 billion. These results reflect a strong financial performance, driven by investments in state-regulated utilities and favorable weather conditions. In addition, Jefferies analysts upgraded Southern Company's stock from Hold to Buy, citing strong growth prospects and a potential increase in rate base growth. The analysts noted that Georgia Power, a Southern Company subsidiary, is expected to secure significant capital expenditures, which could drive earnings growth. Furthermore, Southern Company has upsized its offering of convertible senior notes to $1.45 billion, with proceeds aimed at repurchasing existing notes and paying down commercial paper borrowings. Meanwhile, Scotiabank (TSX:BNS) maintained its Sector Outperform rating on Southern Company, emphasizing the company's consistent earnings growth and strategic positioning. Southern Company's subsidiaries, Virginia Natural Gas and Chattanooga Gas, have also completed renewable natural gas purchases, expected to significantly reduce emissions.
Get The News You Want
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.