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What Do Analysts Think of Southern Company?

Vineet Kulkarni - Author

Nov. 20 2020, Updated 5:00 p.m. ET

Analysts’ price target

Analysts have given Southern Company (SO) a consensus price target of $50.81 for the next year. This price target indicates a potential fall of 0.4%.

The chart above shows how analysts’ views on Southern Company have changed in recent months.

Southern Company’s peer NextEra Energy (NEE) is currently trading at a target price of $142.71. The second largest US utility by market capitalization, Duke Energy (DUK), is currently trading at $86.28. Analysts’ consensus price target for Duke Energy is $84.65 for the next year, indicating a downside of 2%.

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US utilities’ dividend yield at a premium

As US interest rates gradually normalize, we could see increasing weakness in the utility sector (XLU). In mid-2016, US utilities’ yield was trading at a premium of more than 200 basis points to US Treasuries (TLT). However, as it stands in mid-2017, this gap has contracted to less than 100 basis points.

You can read more about the dividend profiles of top US utilities in What Could Impact Southern Company’s Dividends? and NextEra Energy’s Dividend Profile Is Smart despite Lower Yield.

For ongoing updates on the industry, keep checking in with Market Realist’s Power Utilities page.


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