Goldman Sachs analysts refreshed its “Conviction List - Director’s Cut” list to add shares of Southern Company (NYSE:SO).
The list comprises Goldman’s top Buy-rated stocks across the firm’s U.S. coverage. Utility sector analysts see SO as “uniquely positioned to provide above average clean energy growth (nuclear) while having below average regulatory risk within its regulated utility.”
They initiated research coverage of new Utility stocks last month with Southern earning a Buy rating.
“Line of sight to the in-service of the Vogtle Units 3 and 4 nuclear project, attractive regulated utility exposure, and potential upside around energy transition investments drive our constructive view. We expect Vogtle coming online to remove the valuation overhang on the stock,” the Utility analysts said in a note last month.
They have an $80 per share price target on SO stock, signaling an upside potential of nearly 15%, based on Friday’s closing price of $70.25.
The SO stock is up 0.9% in premarket Monday.