
Southern Company (SO) Stock Forecast & Price Target
Southern Company (SO) Analyst Ratings
Bulls say
Southern's stock outlook is supported by its strong growth projections, with management forecasting an impressive 8% electric load growth from 2025 to 2029, driven by increased customer demand from in-migration, data centers, and manufacturing activity. Additionally, the company is targeting a 9% compound annual growth rate (CAGR) for its rate base, reflecting an increase from earlier forecasts, while its capital expenditure plan has been raised to $81 billion for 2026 to 2030. Furthermore, Southern's financial health is underscored by a current funds from operations (FFO) to debt ratio of approximately 15.3%, with a goal to reach 17%, positioning the company for industry-leading balance sheet strength.
Bears say
The negative outlook on Southern's stock stems from a combination of lower-than-average dividend growth, reported at approximately 2.5% compared to peers' growth rate of around 5.5%. Additionally, the company’s fourth-quarter earnings per share (EPS) of $0.55 fell short of both consensus estimates and internal expectations, indicating weak performance. Finally, the company's valuation appears rich relative to its earnings potential, as evidenced by its 6% midpoint being lower than the average within its coverage, reflecting a potential misalignment of valuation and financial performance.
This aggregate rating is based on analysts' research of Southern Company and is not a guaranteed prediction by Public.com or investment advice.
Southern Company (SO) Analyst Forecast & Price Prediction
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