UPDATE: Credit Suisse Upgrades Southern Co. (SO) to Outperform

Credit Suisse analyst Michael Weinstein upgraded Southern Co. (NYSE: SO) from Neutral to Outperform with a price target of $68.00 (from $61.00).

The analyst comments "We see reduced execution risk as the Vogtle nuclear project nears the Hot Functional Testing (HFT) phase despite recent additional COVID19-related schedule delays. Our decision to upgrade now is driven by our view that the cost of a hypothetical and unlikely 12-month long delay beyond the November deadlines would only reduce our valuation by <$1. We also find the story particularly compelling given a new 100 bps higher 5%-7% long-term EPS growth projection driven by reduced nuclear delay penalties and a forthcoming increase in decarbonization capex with plans to achieve 50% reduction in greenhouse gas emissions by 2030 (although may achieve it by 2025) and achieve net-zero by 2050. SO is supported by favorable regulatory jurisdictions, best-in-class ROEs, a $40B, 5-year capex plan, and an incremental $850M of cash flow from Vogtle once in service that helps avoid the need for secondary equity through 2025."

For an analyst ratings summary and ratings history on Southern Co. click here. For more ratings news on Southern Co. click here.

Shares of Southern Co. closed at $59.31 yesterday.

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