AllAnalyst Report
logoArgusJune 01, 2023

The Southern Company: Reaffirming BUY with $75 target

Symbols
SO
Sector(s)
Utilities
Rating
Current Price
$73.21
Price Target
Earnings Estimate
Summary

Southern Company is an electric and gas utility and wholesaler with 9 million customers and 41,000 megawatts of generating capacity. Its gas subsidiary also provides distribution and wholesale gas services. Retail electricity accounts for about 55% of revenue while natural gas operations account for about 30%. The company is based in Atlanta and provides natural gas to customers in Illinois, Georgia, Virginia, and Tennessee, and owns regulated electric utilities in Georgia, Alabama, and Mississippi. Its largest utility, Georgia Power, accounts for about one-third of annual revenue. The company also offers digital wireless and fiber-optic services. Southern's fuel mix is 52% gas, 14% coal, 16% nuclear, and 18% renewables. It is working to achieve net-zero greenhouse gas emissions by 2050, later than at some peers. The fuel mix will change once the company adds two new nuclear reactors to its two existing nuclear units at the Vogtle Electric Generating Plant in Georgia. The company has faced rising costs and COVID-related delays with these reactors. However, the two reactors - the first U.S. nuclear units built in the last 30 years - are expected to enter ser

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