The firm said it lowered its rating on the holding company, which owns common stock in companies such as Alabama Power (ALP-N), Georgia Power (GPE-A), and Mississippi Power (MP-D), due to its belief Southern will deliver a small earnings growth and has a nuclear overhang.
Morgan Stanley cut its price target on the stock to $40 from $46.
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Shares of The Southern Co. are down by -0.51% to $43 in pre-market trading.
Separately, TheStreet Ratings team rates SOUTHERN CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUTHERN CO (SO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: