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

Group 1 - The Southern Company (NYSE:SO) is recognized as one of the best electric utility stocks to invest in currently [1][2] - Morgan Stanley analyst David Arcaro raised the price target for The Southern Company to $91 from $85 while maintaining an Underweight rating [3] - The Southern Company increased its five-year capital plan by 7% to $81 billion for 2026-2030, with approximately half allocated to power generation [4] Group 2 - The company signed contracts with 10 gigawatts of large-load customers and received interest for about 75 gigawatts seeking grid connection [4] - The Southern Company plans to redirect around 1,000 megawatts of gas-fired capacity by 2030 and is in discussions to add 700 megawatts from its existing fleet [4] - The firm forecasts adjusted EPS for 2026 to be between $4.50 and $4.60, with the midpoint lower than the previous estimate of $4.56 [4] Group 3 - The Southern Company operates in three segments: Traditional Electric Operating Companies, Southern Power, and Southern Company Gas [5] - Morgan Stanley maintains an Underweight rating on The Southern Company, indicating a cautious outlook despite the raised price target [7]