The Southern Company (SO) Downgraded by Goldman Sachs

The Southern Company (NYSE:SO) is included among the 10 Best Renewable Energy Dividend Stocks to Buy Now.

The Southern Company (NYSE:SO) is one of the largest producers of electricity in the United States and the largest wholesale provider in the Southeast. Together with its subsidiaries, the company delivers clean, safe, reliable, and affordable energy to its 9 million customers.

The Southern Company (NYSE:SO) received a blow on November 6 when Goldman Sachs downgraded the stock from ‘Buy’ to ‘Neutral’, while also reducing its price target from $106 to $98. The analyst believes that the recent Georgia Public Service Commission election, in which two Democrats unseated two Republican incumbents, has limited the stock’s valuation upside due to the increased uncertainty ‘in a historically solid and certain regulatory jurisdiction’.

Earlier on November 5, Jefferies also downgraded The Southern Company (NYSE:SO) from ‘Buy’ to ‘Hold’, while cutting its price target from $114 to $103, stating that the Republican losses in the aforementioned election have materially increased the stock’s risk profile.

The Southern Company (NYSE:SO) reported mixed results for its third quarter on October 30, with the company’s revenue of $7.82 billion falling short of estimates by $100 million, despite a 7.5% YoY increase. However, SO still managed to beat its quarterly profit estimates on the back of the surging demand for electricity from businesses. The company also declared a quarterly dividend of $0.74 per share on October 20.

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