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

SelfRugger · 2026-03-30T05:39:05+00:00

Morgan Stanley has raised the price target for The Southern Company (SO) to $91 while maintaining an Underweight rating, citing concerns about the utility sector's performance. The company increased its five-year capital plan to $81 billion, focusing on power generation and grid connections.

SelfRugger

2026-03-30 05:39:05

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

Fatima Gulzar

Thu, February 26, 2026 at 12:28 PM GMT+9 2 min read

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

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

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.

While we acknowledge the potential of SO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 20 Best Performing Stocks in 2025 **and **12 Best Food Stocks to Buy in 2026.

Disclosure: None. Follow Insider Monkey on Google News**.**

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