Morgan Stanley Maintains an Underweight Rating on The Southern Company (SO)

The Southern Company (NYSE:SO) is among the 15 Best Electric Utility Stocks to Invest In Now.

The Southern Company (NYSE:SO) is among the Best Utility Stocks.

On February 20, 2026, Morgan Stanley analyst David Arcaro raised The Southern Company (NYSE:SO)'s price goal to $91 from $85 while maintaining an  Underweight rating. Morgan Stanley updated its price forecasts for the North American Regulated and Diversified Utilities and IPPs. The firm found that utilities lagged the S&P in January. Morgan Stanley's Q4 earnings preview forecasts balanced discussions regarding data center pipelines in light of affordability and political concerns.

On February 19, 2026, Reuters reported that The Southern Company (NYSE:SO) increased its five-year capital plan by 7% to $81 billion for 2026-2030 from $76 billion, with roughly half going toward power generation. The company signed 10 gigawatts of large-load customers and received interest for about 75 gigawatts seeking grid connection. The corporation plans to redirect around 1,000 megawatts of gas-fired capacity by 2030. It is in the final stages of discussions to add 700 megawatts from its existing fleet. The firm forecasts 2026 adjusted EPS of $4.50 to $4.60, with the midpoint lower than the $4.56 estimate.

The Southern Company (NYSE:SO) is a holding company that generates and sells electricity. It operates in three segments: Traditional Electric Operating Companies, Southern Power, and Southern Company Gas.

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