Southern Company (SO) Price Target Raised by TD Cowen on Financing and Demand Outlook

On March 6, Shelby Tucker of TD Cowen raised the firm’s terms nonsubjective connected The Southern Company (NYSE:SO) to $112 from $108. It maintained a Buy standing connected the shares. The steadfast said the company’s indebtedness warrant from the U.S. Department of Energy represents some a financing triumph and governmental enactment for its strategy that “growth drives affordability.” According to the analyst, the institution argues that ample increases successful energy request tin payment customers. Minimum measure contracts assistance screen strategy costs and easiness unit connected energy rates. With affordability concerns appearing little cardinal for now, the steadfast believes the institution whitethorn merit a higher valuation premium.

On February 26, Reuters reported that the U.S. Department of Energy offered a $26.54 cardinal indebtedness to subsidiaries of Southern Company to amended powerfulness grid reliability. The financing marks the largest indebtedness ever issued by the department’s indebtedness office. The backing is expected to assistance customers successful Georgia and Alabama prevention much than $7 billion. Part of those savings comes from the company’s committedness to frost energy rates for 3 years.

The loans to Georgia Power and Alabama Power volition enactment much than 16 gigawatts of caller and upgraded powerfulness capacity. Projects tied to the backing see earthy state generation, upgrades astatine atomic facilities, modernization of hydropower assets, vigor retention development, and much than 1,300 miles of transmission improvements.

The Southern Company (NYSE:SO) is an vigor supplier with respective operating subsidiaries. The institution owns 3 accepted electrical utilities, on with Southern Power Company and Southern Company Gas. These utilities supply energy to retail customers crossed the Southeast and besides service wholesale customers successful the region.

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