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

Related SO
Southern Company Q2 Earnings Top on Strong Electricity Sales
Earnings Scheduled For July 30, 2014

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.

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

 

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