Update shared on 20 Nov 2025
Fair value Decreased 1.12%Narrative Update on Southern
Analysts have modestly revised their price target for Southern, lowering it by $1.12 per share. This change reflects updated assessments of discount rates, revenue growth, and margin projections.
What's in the News
- The Southern Company completed a Composite Units Offering valued at $1.75 billion. The company issued 35 million equity/derivative units at $50 per unit with a $0.875 discount per security (Key Developments).
- Multiple financial institutions, including Goldman Sachs, Morgan Stanley, Citigroup, Wells Fargo, and others, were added as Co-Lead Underwriters for the Composite Units Offering (Key Developments).
- Lock-up agreements are now in place for the company's corporate units, common stock, and related options. These agreements restrict certain transactions for 45 days, from November 3 to December 18, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased modestly from $100.45 to $99.33 per share.
- Discount Rate: Increased slightly from 6.94% to 7.08%.
- Revenue Growth Projection: Edged down from 4.49% to 4.44%.
- Net Profit Margin: Increased fractionally from 17.91% to 17.95%.
- Future P/E Ratio: Declined marginally from 23.22x to 22.98x.
Disclaimer
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