• In recent days, multiple brokers including Barclays have reiterated their existing views on Southern Company while updating their formal research assessments.
• These moves collectively highlight how a broad group of analysts is reassessing Southern’s prospects as one of the largest regulated utilities in the US.
• With analysts broadly reappraising Southern’s outlook, we’ll now examine how this reassessment could influence the company’s long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Southern Investment Narrative Recap

To own Southern, you need to be comfortable with a large, capital intensive, mostly regulated utility that is leaning on long term demand growth and constructive regulators to support earnings. The recent cluster of cautious analyst actions, including Barclays trimming its price target while maintaining its rating, does not materially change the near term focus on execution of the expanded capital plan as the key catalyst, or the funding and margin pressure from that same plan as the central risk.

The most relevant near term development is Southern’s upcoming Q4 2025 earnings release and conference call on 19 February 2026, where management is likely to update investors on capital spending, load trends and regulatory proceedings. For shareholders watching how lower analyst price targets intersect with a larger capital program and prior equity issuance, this event could help clarify how well current earnings and cash flows are tracking against those investment and financing needs.

Yet behind the reassuring tone of reaffirmed ratings, the growing capital plan and potential dilution are risks investors should be aware of as they consider…

Read the full narrative on Southern (it’s free!)

Southern’s narrative projects $31.7 billion revenue and $5.8 billion earnings by 2028. This requires 3.8% yearly revenue growth and about a $1.5 billion earnings increase from $4.3 billion today.

Uncover how Southern’s forecasts yield a $99.22 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community currently place Southern’s fair value between US$77.85 and US$258.36, highlighting how far apart individual views can be. Against that wide range, the enlarged US$76,000,000,000 capital plan and related equity needs keep questions about dilution and net margin pressure front and center for the company’s future performance, inviting you to weigh several competing viewpoints.

Explore 5 other fair value estimates on Southern – why the stock might be worth over 2x more than the current price!

Build Your Own Southern Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Southern research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Southern research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Southern’s overall financial health at a glance.

No Opportunity In Southern?

Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com