TD Cowen Lifts Southern Company Target to $112 on $26.5B DOE Loan
TD Cowen raised Southern Company’s price objective to $112 from $108, maintaining a Buy rating based on a $26.54 billion DOE loan guarantee that underpins growth and affordability. The financing will fund over 16 GW of capacity additions, a three-year rate freeze and deliver $7 billion in customer savings.
1. Price Target Raise by TD Cowen
TD Cowen increased its price objective on Southern Company to $112 from $108 and maintained a Buy rating. The firm highlighted the DOE loan guarantee and anticipated electricity demand growth as catalysts for a valuation premium.
2. DOE Loan Package and Grid Upgrades
The U.S. Department of Energy offered a $26.54 billion loan to Georgia Power and Alabama Power, the largest in DOE history. The funds will support over 16 GW of new and upgraded capacity—including natural gas, nuclear enhancements, hydropower, energy storage and 1,300 miles of transmission—and underwrite a three-year rate freeze projected to save customers $7 billion.