Southern Company (SO) Stock Forecast & Price Target

Southern's stock outlook is bolstered by a projected 8% electric load growth from 2025 to 2029, driven by in-migration, data centers, and increased manufacturing activity. The company maintains a solid financial profile with a current funds from operations (FFO) to debt ratio of approximately 15.3%, with aspirations to achieve 17% by the end of the forecast period, positioning it as an industry leader in this metric. This combination of robust demand and strong balance sheet management suggests a favorable long-term outlook for Southern's financial performance.

Southern Company's dividend growth of approximately 2.5% significantly lags behind the average of its peers, which stands at around 5.5%, indicating potential issues in maintaining competitive shareholder returns. Furthermore, its 6% midpoint return is now below the average of analyst coverage, suggesting a lack of competitive performance relative to its valuation. These factors collectively contribute to a negative outlook on Southern's stock, as the company struggles to match market expectations and peer performance metrics.