UPDATE: Jefferies Downgrades The Southern Company to Hold on Updated Views
In a report published Friday, Jefferies analyst Paul B. Fremont downgraded the rating on The Southern Company (NYSE: SO) from Buy to Hold, and lowered the price target from $53.50 to $46.00.
In the report, Jefferies noted, “With the current investor focus over lower ROEs and cost overruns at the Kemper County IGCC plant, Jefferies believes that the stock will continue to trade at a group average P/E multiple versus its historical 5-15% premium. Our upgrade was predicated on trading SO at a premium multiple, so we have revised our price target to reflect our updated views and believe the stock is fair value at current levels. Downgrading to Hold.”
The Southern Company closed on Thursday at $44.65.
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