BMO Affirms 'Outperform' Rating on Southern Co (SO) Hikes Price Target

The Southern Company (NYSE:SO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, analysts at BMO Capital reiterated an ‘Outperform’ rating on the stock and increased the price target to $102 from $98. The positive stance stems from the company delivering a robust 19.7% return over the past year.

Similarly, BMO Capital expects the company to deliver solid second-quarter results characterized by earnings of $0.87 a share. The research firm also expects Southern Co to refresh its capital and financing plans.

The Buy rating also comes with expectations that Southern Co.’s calendar is largely de-risked following the approval of an alternative rate plan and an Integrated Resource Plan for Georgia Power. The remarks follow the company’s announcement of a quarterly dividend of 74 cents per share.

The Southern Company (NYSE:SO) is an energy provider that generates and distributes electricity and natural gas. It serves millions of customers through various operating companies and also engages in wholesale electricity sales.

While we acknowledge the potential of SO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.