SO - Southern raised to Buy at Mizuho with Vogtle 4 nearing completion

2023-04-20 15:34:18 ET

Southern Co. ( NYSE: SO ) wobbles between small gains and losses Thursday as Mizuho upgraded the stock to Buy from Hold with a $77 price target, as Vogtle Unit 4 nears completion after numerous delays and cost overruns.

Once Vogtle 4 is in-service, a pure-play Southern ( SO ), operating in constructive jurisdictions, should trade in line with other high-quality peers, according to Mizuho analyst Brandon Lee, noting a line of sight to the completion of Vogtle construction, with Vogtle Unit 3 generating 50% thermal power and Unit 4 undergoing hot functional testing.

Lee said Southern ( SO ) could garner a double-digit P/E premium, similar to its pre-Kemper and pre-Vogtle construction days.

Southern's ( SO ) "above-industry average dividend combined with a reasonable valuation and history of solid price appreciation allow us to look past" Vogtle's construction stumbles, Ironside Research writes in an analysis newly published on Seeking Alpha .

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