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

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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
May 2016Scotia Howard WielInitiates Coverage onSector Perform
Feb 2016SunTrust Robinson HumphreyMaintainsNeutral
Feb 2016Argus ResearchMaintainsBuy

View More Analyst Ratings for SO
View the Latest Analyst Ratings

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

 

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