UPDATE: Credit Suisse Downgrades Southern Company to Underperform; Premium Unwarranted

Credit Suisse reduced its rating on Southern Energy

from Neutral to Underperform with a $49 price target. Credit Suisse noted, "We still view SO as an excellent utility with one of the best mgmt teams but we think the stock is more likely to underperform especially versus other large cap names given the current premium multiple… On relative P/E SO is currently trading at 122% vs the S&P on 2012 and 125% on 2013, an 8-10% premium vs the other comparable large caps (D, DUK, ED, and XEL) and rich to its historic 7% premium on a relative basis." Southern Company closed at $45.67 on Monday.