Scotiabank cuts Southern Co rating on below-average EPS, dividend growth

Southern

03/10/2025 12:15

** Scotiabank cuts rating on Southern Co SO.N to "sector perform" from "sector outperform", citing below-average EPS, dividend growth

** "Unmatched quality among large-cap regulated utilities with a clear regulatory calendar and a robust demand story, but growth is subpar on a guidance basis, the valuation is rich, and the market doesn’t seem to be looking for a safe-haven stock right now," says brokerage

** "We worry that a reiteration of the 5% to 7% EPS compound annual growth rate range may underwhelm," it says

** Eight of 20 brokerages rate the stock "buy" or higher, 11 "hold" and one "sell"; median PT is $99 - data compiled by LSEG

** As of last close, shares up about 14% YTD

(Reporting by Parth Chandna)

((Parth.Chandna@thomsonreuters.com;))