Scotiabank downgrades Southern Company on ‘rich’ valuation

Scotiabank analyst Andrew Weisel downgraded Southern Company (SO) to Sector Perform from Outperform with an unchanged price target of $99. The firm cites the passing of the company’s major regulatory catalysts, the stock’s “rich” valuation, and Southern’s below-average earnings and dividend growth for the downgrade. The analyst continues to view Southern Company as an “attractive safe-haven stock,” but points out management has made clear that a “rebasing” of its 5%-7% annual earnings growth outlook should not be expected until 2027 at the earliest.