What Analysts Recommend for Southern Company
Wall Street analysts’ consensus price target for Southern Company (SO) is $50.59. The stock’s current market price is $50.07, implying a potential rise of 1% for it over the next year.
Of the 21 analysts tracking Southern Company, one has recommended a “buy,” one has recommended a “strong buy,” and 14 have have recommended “holds.” Southern Company also has three “sell” and two “strong sell” recommendations on May 8, 2017.
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Wall Street analysts’ consensus price target for Duke Energy (DUK) is $83.63. Its current market price is $82.04, implying a potential rise of nearly 2.0% over the next year.
NextEra Energy (NEE) has a price target of $142.08 compared to its current market price of $133.36. This difference implies an expected rise of 6.5% for the stock over the next year.
US utilities have been trading at premium valuations for quite a long time now. The last significant downfall that US utility stocks witnessed was in mid-2016. After the 2016 elections, utilities again started rallying despite the increased possibility of interest rate hikes. Going forward, higher interest rates could affect utilities negatively.
However, on a positive note, US utilities currently look fundamentally strong, and their expected healthy earnings and dividend growth rates could keep them strong going forward.
For ongoing updates on the industry, keep checking in with Market Realist’s Power Utilities page.