WallStSmart
SO

Southern Company

NYSE: SO · UTILITIES · UTILITIES - REGULATED ELECTRIC

$96.70
+3.41% today

Updated 2026-04-29

Market cap
$105.39B
P/E ratio
23.85
P/S ratio
3.57x
EPS (TTM)
$3.92
Dividend yield
3.13%
52W range
$80 – $100
Volume
5.4M
OverviewPrice TargetsFinancialsValuationInsidersEarnings

Southern Company (SO) Financial Forecast & Price Target 2030

Research-backed projections from analyst consensus, management guidance, and sector analysis.

Price target summary

Current
$96.70
Consensus
$98.78
+2.15%
2030 Target
$428.78
+343.41%
DCF
$71.61
-30.61% MoS
28 analysts:
4 Buy12 Hold2 Sell

Management guidance

Southern Company raised its 5-year capital spending plan by 7% in response to surging data center power demand. CEO guidance indicates accelerating investment in grid infrastructure and renewable/battery storage capacity through 2030, with specific focus on supporting AI/data center load growth. No specific revenue targets disclosed, but capex increase of ~$1.5B signals management expects revenue growth to exceed historical 7.7% CAGR.

Sources: Management guidance, analyst consensus, sector analysishigh confidence

Revenue & price projection

Actual revenue Projected revenue Base case Bull to bear range
Bull case (2030)
$721.13
$40.4B Rev × 20x P/S
Base case (2030)
$428.78
$40.4B Rev × 12x P/S
Bear case (2030)
$292.35
$40.4B Rev × 8x P/S

Financial forecast — research-backed

Metric2023202420252026 (E)2027 (E)2028 (E)2029 (E)2030 (E)
Revenue$25.3B$26.7B$29.6B$32.0B$34.0B$36.0B$38.1B$40.4B
Revenue growth—5.8%10.6%8.2%6.1%5.9%6.0%6.0%
EPS$3.64$4.06$4.30$4.71$5.08$5.48$5.92$6.40
P/S ratio———12.0x12.0x12.0x12.0x12.0x
Implied price———$341.08$360.57$389.80$409.29$428.78

Catalysts & risks

Growth catalysts
+ DOE $26.5B loan guarantee enables 5 GW new capacity (gas, renewables, battery storage) — de-risks capex and accelerates revenue-generating asset deployment
+ AI data center power demand surge — Georgia Power, OG&E, and Mississippi Power all expanding capacity specifically for data center/AI loads; multi-year contracts likely with major cloud providers
+ Battery storage expansion — 3,000+ MW of BESS capacity planned across footprint (Georgia Power 260 MW breaking ground 2026, multiple 2027 completions) = higher-margin revenue streams
+ Rate case wins and regulatory tailwinds — recent rate case approvals and cost recovery mechanisms support 5-7% annual rate base growth
+ Renewable energy procurement acceleration — largest distributed generation solar procurement in company history announced; integrated solar+battery projects accelerate
Key risks
- Regulatory/FERC pressure on returns — FERC reducing allowed returns on transmission assets (see Eversource dispute); could impact SO's regulated return assumptions
- Coal ash cleanup cost inflation — Georgia Power coal ash remediation costs rose $521M to $8.5B total; potential for further inflation-driven increases and customer pushback on bill impacts
- Interest rate sensitivity — utility capex is financed debt; higher rates increase cost of capital and debt service, compressing margins if rates not passed through in tariffs
- Weather volatility and generation shortfalls — January 2026 generation declined 0.7% YoY; climate extremes create margin pressure on commodity revenue
- Political/customer backlash on rates — Georgia Power profit criticism (23% of bills); rising electricity costs driving political pressure to limit rate increases despite capex needs

Methodology

Southern Company's forward estimates are derived from AI-powered research synthesis combining analyst consensus from 28 Wall Street analysts, management guidance from the latest earnings call, and sector growth forecasts from industry research. Revenue and EPS projections use analyst consensus where available and conservative extrapolation with growth deceleration for outer years. Price targets are calculated using a tiered Price-to-Sales (P/S) methodology, where the P/S multiple is determined by the projected revenue growth rate.

WallStSmart proprietary research model · Not financial advice · Past performance is not indicative of future results · Last researched: April 6, 2026.