Company Reports

Data center electricity demand growth is a key source of upside for US utilities that we don't think the market appreciates. We consider the sector 9% undervalued as of April 8 in part because we expect electricity demand growth to top market expectations, requiring substantial energy infrastructure investment and boosting utilities' earnings growth.

We are reaffirming our $69 fair value estimate for Southern after the company reported $3.65 per share of operating earnings in 2023, up from $3.60 in 2022 and slightly higher than our estimate. On a weather-adjusted basis, earnings were up 6%, in line with our outlook and management's 5%-7% annual growth target. We are reaffirming our narrow moat rating.

We are reaffirming our $69 fair value estimate for Southern Co. after incorporating a ruling from Georgia regulators that will allow the company's Georgia Power subsidiary to raise customer rates $729 million annualized as soon as the Vogtle nuclear plant Unit 4 enters service, likely as soon as March. We are also reaffirming our narrow moat rating.

Southern is in the process of a dramatic clean energy transformation. Its $43 billion capital investment plan during the next five years will reduce greenhouse gas emissions, expand renewable energy, strengthen the gas system, and support the Southeast region's fast-growing energy demand.

Southern is in the process of a dramatic clean energy transformation. Its $43 billion capital investment plan during the next five years will reduce greenhouse gas emissions, expand renewable energy, strengthen the gas system, and support the Southeast region's fast-growing energy demand.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

We are reaffirming our $68 fair value estimate and narrow moat rating for Southern Co. after incorporating regulatory developments in Illinois.

We are reaffirming our $68 fair value estimate for Southern after the company reported $1.42 per share of operating earnings during the third quarter, up from $1.31 in the same quarter in 2022, primarily because of warmer summer weather. We are reaffirming our narrow moat rating.

Southern is undergoing one of the most dramatic transformations in the utilities sector with its plan to invest $43 billion during the next five years to reduce greenhouse gas emissions, build renewable energy projects, strengthen the gas system, and support the Southeast region's fast-growing energy demand.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

We are reaffirming our $68 fair value estimate for Southern Company after it announced two large solar energy project acquisitions in Texas and Wyoming this month.

We are reaffirming our $68 fair value estimate for Southern after the company reported earning $0.69 per share on an adjusted basis during the second quarter of 2023, down from $1.07 in the same quarter last year, primarily because of milder weather. We are reaffirming our narrow moat rating.

We are reaffirming our $68 fair value estimate for Southern after the company reported earning $0.79 per share on an adjusted basis during the first quarter of 2023, down from $0.97 the same quarter last year primarily due to milder weather. We are reaffirming our narrow moat and stable moat trend ratings.

Southern is undergoing one of the most dramatic transformations in the utilities sector with its plan to invest $43 billion during the next five years to reduce greenhouse gas emissions, build renewable energy projects, strengthen the gas system, and support the Southeast region's fast-growing energy demand.

We are reaffirming our $67 fair value estimate for Southern after the company reported earning $3.60 per share on an adjusted basis in 2022, up 5.6% from 2021. We are reaffirming our narrow moat and stable moat trend ratings.

We are reaffirming our outlook for Southern Company after the company announced that longtime Southern executive Chris Womack will succeed CEO and president Tom Fanning in March. We’ve been anticipating this announcement since Bloomberg published a report in August suggesting Fanning planned to retire soon. We are reaffirming our narrow moat and stable moat trend ratings.

Southern is undergoing one of the most dramatic transformations in the utilities sector as it reduces greenhouse gas emissions from its power generation fleet, invests in renewable energy, and supports the Southeast region's fast-growing energy demand.

We are reaffirming our near-term and long-term outlooks for Southern Company after Georgia regulators on Dec. 20 approved a settlement to raise customers' electric rates in the state, the company's largest service territory. We consider the settlement a constructive outcome for investors. We are also reaffirming our narrow moat and stable moat trend ratings.

Southern is undergoing one of the most dramatic transformations in the utilities sector as it reduces its greenhouse gas emissions, invests in renewable energy, and supports the Southeast region's fast-growing energy demand.

We are reaffirming our $66 fair value estimate for Southern after the company reported earning $1.31 per share on an adjusted basis in the third quarter, up 6.5% from the year-ago quarter. We are also reaffirming our narrow moat and stable moat trend ratings.