Southern Company: Solid Execution And Data-Center Tailwinds Unlock Upside
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Narek Hovhannisyan344 FollowersFollow5ShareSavePlay(14min)CommentsSummarySouthern Company (SO) is rated Buy with a $96 target, offering 12% upside and a 3.5% dividend yield.Q3 results exceeded expectations, driven by strong demand from data centers and regional economic growth.SO's revenue structure is shifting, with long-term sales growth underpinned by contracted industrial and data center clients.Despite high leverage, SO's capital structure remains manageable, supporting continued dividend growth and robust free cash flow. CHUNYIP WONG/E+ via Getty Images Investment Thesis In my first article about the Southern Company (SO), I recommended holding shares. At that time, the stock was worth $95, trading at a small premium to the market, and there were no strong drivers for price growth above $100. During this period, theThis article was written byNarek Hovhannisyan344 FollowersFollowHi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind every financial statement is a real story. I studied in Belgium — did my bachelor’s in Antwerp, master’s at KU Leuven, and later completed an MBA in Finance at Vlerick. That journey gave me both theory and hands-on skills. Now I’m building my own investment project focused on the CIS region. I’m passionate about applying Western analytical tools to uncover hidden value in emerging markets. If you enjoy deep, fundamentals-driven research and digging beneath the surface of a company — glad to have you on board!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You