Southern Co.: Raised Growth Ambitions and Capex Elevate Long-Term Potential but Keep Risk/Reward Balanced at Hold

UBS analyst William Appicelli has maintained their neutral stance on SO stock, giving a Hold rating today.

William Appicelli has given his Hold rating due to a combination of factors related to Southern Co.’s results and outlook. While 2025 adjusted EPS showed solid year-over-year growth and key earnings contributors such as the electric and gas businesses performed well, quarterly EPS modestly lagged UBS’s estimate, tempering near-term upside.

At the same time, management raised its long-term growth profile, backed by a sizeable step-up in capex, robust rate base expansion through 2030, and a strong large-load pipeline that underpins double-digit expected retail sales growth. However, the more ambitious investment plan requires additional equity funding and introduces execution and dilution risks, leading Appicelli to see a balanced risk/reward profile that supports maintaining a Hold rather than moving to a more aggressive rating.

In another report released today, Wells Fargo also upgraded the stock to a Hold with a $96.00 price target.

SO’s price has also changed slightly for the past six months – from $94.180 to $95.050, which is a 0.92% increase.