
Southern Company (SO) Stock Forecast & Price Target
Southern Company (SO) Analyst Ratings
Bulls say
Southern is well-positioned for continued growth, benefiting from a forecasted 8% electric load growth between 2025 and 2029 due to factors such as in-migration, data center expansions, and increased manufacturing activity. The company's balance sheet reflects a solid financial foundation, with funds from operations to debt (FFO/debt) currently around 15.3%, and management aims to enhance this to 17% by the end of the forecast period, indicating a strong emphasis on financial health and leadership in the industry. Moreover, Southern's diverse portfolio, which includes 44 gigawatts of rate-regulated generating capacity and 13 gigawatts of natural gas and renewable energy, positions it favorably as it adapts to evolving market demands.
Bears say
The financial outlook for Southern's stock appears negative due to its comparatively slow dividend growth of approximately 2.5%, which lags significantly behind the average growth rate of about 5.5% seen among its peers. Additionally, the company's 6% midpoint yield has fallen below the average of its coverage, raising concerns about its premium valuation in the current market environment. These factors suggest that Southern may struggle to compete effectively within the utility sector, leading to a more cautious view on its financial prospects.
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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