Jefferies lowers Southern stock price target on regulatory outlook

BMO Capital reduced its price target for Southern Co. (NYSE:SO) to $98 from $104, citing valuation concerns, while maintaining an Outperform rating. The stock trades at $90.32 with a $104B market cap. BMO expects 2026 EPS of $1.75, above consensus. Southern Co. reported Q2 2026 adjusted earnings of $1.13 per share, beating estimates, but revenue missed expectations. Jefferies lowered its price target to $95 with a Hold rating.

Google agreed to help fund upgrades to Georgia Power's nuclear reactors, adding 96 MW capacity. The deal, filed with regulators, aims to benefit customers and avoid cost shifts. Google will pay extra for carbon-free credits. Georgia Power projects $900M in customer benefits. The PSC must approve the agreement.

Southern Company's (SO) Georgia Power and Google (GOOG, GOOGL) agreed to upgrade nuclear plants, adding 96 MW capacity. The deal, pending approval, aims to power Google's data centers with clean energy, offering $900M in customer benefits. Google will receive Zero-Emission Credits. Southern Co. closed at $85.46, up 0.48% in extended trading.

Georgia Power and Google agreed to a deal, pending approval, to increase nuclear capacity at Plants Vogtle and Hatch. Google's subscription is expected to provide $900M in customer benefits. The agreement includes a new tariff structure and uprates for the plants, aiming to boost clean energy and reduce costs. Georgia Power, a subsidiary of Southern Company (SO), announced the deal.

Southern Company (SO) received approval for a 25-year deal to serve OpenAI's 3.2GW data center in Georgia. OpenAI will cover infrastructure costs, with Georgia Power projecting $950M annual rate relief from 2029-2031 for customers. The deal includes up to 1GW of flexible demand response, but bears note concentration risk and grid reliability concerns.

Duke Energy (DUK), Southern Company (SO), and Consolidated Edison (ED) report strong earnings and dividend growth. Duke's Q2 EPS beat estimates, with management reaffirming full-year guidance. Southern's Q2 EPS also exceeded expectations, and Con Edison extended its 52-year dividend increase streak. All three companies benefit from regulated cash flows and long-term growth plans.