UPDATE: Southern Company Downgraded by Citigroup

In a report published Thursday, Citigroup analyst Shahriar Pourreza downgraded Southern Company SO from Buy to Neutral, lowering price target from $45 to $43.

The report notes, "in our view, and the shares now trade in line with the peer group average. Current valuation levels coupled with lower earnings growth profile will result into an inline sector performance as corporate bond yields increase in ‘14 and beyond."

Despite good fundamentals, Citigroup comments that rapid economic growth and increased rates can be headwind factor for the company.

SO closed Wednesday at $40.38 and is trading around $40.69.