Southern Co (NYSE:SO) stock fell 0.77% (As on March 6, 11:13:36 AM UTC-4, Source: Google Finance) after Evercore ISI upgraded the company to Outperform from In Line with a price target of $111, up from $103. The firm, which continues to view Southern as a core foundational utility holding for any utility investor, has grown “incrementally bullish” over the last two months and believes shares are poised to “further breakout to all time highs.”
The utility company reported fourth-quarter 2025 adjusted earnings per share of $0.55, up from $0.50 in the prior-year period. Full-year 2025 adjusted EPS reached $4.30, at the top end of guidance and up from $4.05 in 2024. The $109 billion utility trades at a P/E ratio of 24.85 and offers a 3% dividend yield, having raised its dividend for 24 consecutive years
Southern introduced 2026 adjusted EPS guidance of $4.50 to $4.60, representing 7% growth off the 2025 guidance midpoint. The company raised its long-term framework to 8% adjusted EPS growth through 2030, with 8% to 9% growth expected from 2026 to 2028 and 7% to 8% growth thereafter from a higher 2028 base.
Evercore ISI said more than 90% of projected earnings are sourced from state-regulated electric and gas utilities. The firm cited Southern’s favorable regulatory environment, economic development program, and investment opportunity pipeline in generation and transmission.
The analyst said Southern’s vertically integrated approach, constructive regulatory jurisdictions in the Southeast, accelerating large-load demand, disciplined capital deployment, and credit-supportive funding plan support its earnings growth profile. While InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value, the company’s comprehensive Pro Research Report offers deeper insights into its growth trajectory, with 8 additional ProTips available to subscribers.
In other recent news, Southern Company has secured a substantial $26.5 billion loan from the Department of Energy’s Office of Energy Dominance Financing. This loan will finance energy infrastructure projects across the Southeastern service territory, with an estimated $7 billion in customer savings over the loan term. Additionally, KeyBanc has upgraded Southern Co.’s stock rating to Sector Weight from Underweight, noting a shift in the company’s historical valuation premium. In a separate development, Mississippi Power, a subsidiary of Southern Company, has appointed Fredie Carmichael as vice president of Customer Solutions and Corporate Communications. Carmichael will oversee various teams, including marketing and customer service, and will serve on the company’s management council.