
Southern Company (SO) Stock Forecast & Price Target
Southern Company (SO) Analyst Ratings
Bulls say
Southern is poised for significant growth due to a projected 8% increase in electric load from 2025 to 2029, driven by in-migration, data centers, and manufacturing activity. The company's financial resilience is also highlighted by a funds from operations (FFO) to debt ratio of approximately 15.3%, with a management target to elevate this figure to 17% by the end of the forecast period, positioning Southern favorably within the industry. Additionally, the company benefits from a diversified portfolio, including 44 gigawatts of rate-regulated generating capacity and 13 gigawatts of renewable and natural gas generation, enhancing its long-term operational stability.
Bears say
Southern Company's dividend growth rate of approximately 2.5% falls significantly short compared to peers, which offer a more robust growth rate of around 5.5%. Furthermore, Southern's 6% midpoint is currently below the average within its coverage group, which raises concerns about the sustainability of its premium valuation. These metrics suggest that Southern's performance in both dividend growth and financial metrics does not align favorably with industry standards, contributing to a negative outlook for the company's stock.
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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