Market Overview

UPDATE: Bank of America Downgrades Southern Company to Neutral, Valuation Full

Share:
Related SO
Fast Money Picks For March 19: SAP SE, United Rentals, Southern Co
Fast Money Picks For February 25: General Electric, Southern Co, Verisign, Hewlett-Packard
Stock Market News for March 27, 2015 - Market News (Zacks)

Bank of America lowers its rating on Southern Company (NYSE: SO) from Buy to Neutral, but raises its price target from $47 to $48.

Bank of America comments, "We are downgrading SO to Neutral from Buy. SO is trading at an 11% premium to the regulated group. While we continue to like SO's high-quality, low-risk profile, we see this reflected in the premium stock valuation. SO is currently trading at an 18x forward P/E, one of the highest in the S&P 500. We believe the current flight to defensive stocks has benefitted utility stocks, but valuations look increasingly stretched, particularly for large cap names like SO."

SO closed at $47.70 on Tuesday.

Latest Ratings for SO

DateFirmActionFromTo
Mar 2015SunTrust Robinson HumphreyMaintainsNeutral
Jan 2015JefferiesMaintainsHold
Dec 2014Deutsche BankMaintainsHold

View More Analyst Ratings for SO
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Price Target Intraday Update Analyst Ratings

 

Related Articles (SO)

Around the Web, We're Loving...