Analyst Lowers Price Target for Southern Company (NYSE: SO) Despite Strong Performance and Dividend Outlook

Southern Company (NYSE: SO) is a prominent electric utility whose businesses include Alabama Power. Morgan Stanley (NYSE: MS) analyst David Arcaro recently lowered his price target for Southern Company to $84.00 from $85.00. At the stated $90.69 share price, the utility stock trades approximately 7.4% above his new target. A stock price target is an analyst’s estimate of where a stock may trade.

This gap between the current share price and Arcaro’s target follows a period of strong share performance for Southern Company. Its shares gained 6.62% over that period, significantly outperforming the Utilities sector, which saw a 1.69% increase, and the S&P 500, which rose by 1.46%, as highlighted by Zacks. In a separate trading snapshot, Southern Company closed at $89.27, down 2.09%.

Southern Company’s core utility operations remain a key focus for investors. Its subsidiary, Alabama Power, recently completed extensive restoration work after Hurricane Isaias disrupted electricity for over 400,000 customers. The company successfully restored service to approximately 95% of affected customers within 36 hours, leveraging support from more than 7,400 additional personnel and resources. Southern Company also noted that its advanced outage-prevention technology helped 69,000 customers avoid extended outages.

Investors also have Southern Company’s upcoming earnings and dividends to consider alongside the adjusted price target. Analysts anticipate Southern Company will report $1.70 in earnings per share (EPS), marking a 6.25% increase from the previous year, and $8.45 billion in revenue, an 8.04% rise, on November 5, 2026. Furthermore, Southern Company announced a $0.76 quarterly dividend per share, payable on December 7, 2026, reinforcing its appeal as a dividend stock.