Southern Company resumed with a Sector Perform at RBC Capital

RBC Capital analyst Stephen D’Ambrisi resumed coverage of Southern Company (SO) with a Sector Perform rating and $107 price target The firm said the current roughly 10% premium compared to large cap regulated electric peers reflects Southern’s position as a model utility in some of the best jurisdictions in the country. Load growth at Georgia Power combined with limited lag in Alabama and Mississippi provides potential for EPS growth at the high end of the guided 5%-7% CAGR without a need for substantial rate increases, the analyst tells investors in a research note.