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

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

Credit Suisse reduced its rating on Southern Energy (NYSE: SO) 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.

Latest Ratings for SO

DateFirmActionFromTo
Sep 2014SunTrust Robinson HumphreyMaintainsNeutral
Aug 2014Morgan StanleyDowngradesEqual-weightUnderweight
Aug 2014SunTrust Robinson HumphreyMaintainsNeutral

View More Analyst Ratings for SO
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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