Southern (SO) Looks Good In The Long Term
Symbols: SO
Tags: Barron's, Jefferies & Co
Posted in: Long Ideas, Analyst Color, Downgrades, Barron's, Price Target, Analyst Ratings, Media, Trading Ideas
In a research note published in Barron’s, Jefferies & Co downgraded Southern (ticker: SO) from “buy” to “hold.” The target price for SO has been reduced from $36.50 to $33.50.
According to Jefferies & Co, there is less upside potential in regulated utilities, which are not geared to benefit from an economic recovery and a rise in electricity demand. As a result, merchant generators are looking more attractive.
Jefferies & Co believes that Southern, which offers an above-average dividend yield and below-average risk, would trade at a premium to a peer group of largely-regulated electric utilities in the long term.
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