- Southern Co. (SO +0.9%) is higher after Barclays upgrades shares to Overweight from Equal Weight with a $62 price target, raised from $59, as the firm says risk/reward is improving as SO transforms to an infrastructure company.
- The firm says the opportunities stem from Southern Power, Southern Co. Gas and the recently announced strategic venture with Kinder Morgan, while the main risks such as Kemper County, Vogtle and the typical uncertainty surrounding M&A are all waning.
- SO merits only a Neutral rating at Goldman Sachs, citing heightened regulatory risk given ongoing investigations into the Kemper County clean coal project and a major rate case next year for the project and regulatory approvals for potential incremental nuclear construction costs at the Vogtle site.