Morgan Stanley Maintains Underweight on The Southern Company (SO) Feb 2026
Morgan Stanley maintained an Underweight rating on The Southern Company (SO) on February 20, 2026, while raising its price target to $91 from $85. That SO analyst rating comes with a small near-term market move of 0.49% ($0.47) and follows the firm’s valuation view. Meyka AI, an AI-powered market analysis platform, tracked the change and notes the company market cap at $103,856,208,792. This update is price-target positive but keeps a cautious stance on longer-term upside, and it is important for investors weighing income, rate sensitivity, and regulatory exposure.
SO analyst rating update and price target
The headline action was Morgan Stanley maintaining an Underweight rating on SO on February 20, 2026. The firm raised its price target to $91 from $85, signaling slightly higher fair-value expectations but no change to the risk view.
The price-target lift of $6 is valuation driven and does not alter the downside bias implicit in an Underweight call.
Details of Morgan Stanley’s note
Morgan Stanley kept the firm-level recommendation at Underweight while citing valuation support for a modest price target increase. The firm highlighted factors that justify a higher target but still sees limited upside relative to peers.
The update was published on TheFly and can be reviewed for the full rationale and analyst comments source.
How the market reacted to the SO analyst rating
The market response was muted with a 0.49% ($0.47) move noted at release, reflecting that the rating itself was maintained. The modest price reaction shows investors focused on the price-target lift rather than a change in conviction.
Given the company’s $103,856,208,792 market cap, large-cap flows and dividend-seeking demand will likely temper volatility after single-firm notes.
What this SO analyst rating means for investors
Maintained Underweight signals Morgan Stanley still sees relative weakness versus the market or sector, even with a higher target. Income investors should weigh yield stability against the firm’s view of limited capital appreciation.
Active investors may treat the price-target rise as a signal to reassess valuation bands, while conservative holders may stay focused on dividends and regulatory developments.
Historical analyst coverage context for The Southern Company
Analyst coverage of The Southern Company has varied, with price targets and ratings reflecting regulatory risk, capex plans, and rate case outcomes. Some firms have been neutral to bullish while others have remained cautious over past quarters.
Broad market upgrades and downgrades lists show regular analyst reappraisals, and services like Barron’s track these changes across sectors source.
Meyka Grade and near-term outlook for SO
Meyka AI rates SO with a grade of B+. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus.
These grades are not guaranteed and we are not financial advisors. Investors should use the Meyka grade alongside analyst notes and personal risk profiles.
Final Thoughts
Morgan Stanley’s February 20, 2026 note kept its Underweight rating on The Southern Company while raising the price target to $91 from $85. That SO analyst rating shows the firm sees modest upside in valuation but continues to flag relative weakness versus peers. For income-focused investors, the maintained rating does not directly challenge dividend reliability, but it does temper expectations for share-price gains. For total-return investors, the modest price-target increase may prompt revaluation only if other firms follow with upgrades. Historical coverage shows a mix of conservative and neutral views, so tracking consensus changes matters. Meyka AI rates SO B+, reflecting stable fundamentals against benchmark and sector comparisons. Use this SO analyst rating and the $91 target as one input in a broader process that includes dividend profile, rate environment, and regulatory developments. These grades and ratings are informational and not investment advice.
FAQs
What exactly changed in the Morgan Stanley note for SO on Feb 20, 2026?
Morgan Stanley maintained an Underweight rating for SO and raised its price target to $91 from $85 on February 20, 2026. The firm kept its cautious view while adjusting fair-value assumptions upward.
How should investors interpret the SO analyst rating of Underweight?
An Underweight rating signals limited expected upside versus peers or the market. For SO, it means analysts see valuation or sector headwinds that outweigh near-term share appreciation potential.
Does the new SO price target affect dividend investors?
The $91 price target is a valuation view and does not change dividend policy directly. Dividend investors should still review payout consistency, cash flow, and regulatory risks before acting.
Where can I read Morgan Stanley’s note on SO?
The Morgan Stanley update raising the SO price target and maintaining Underweight was reported on TheFly and is available for review in that report source.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Analyst ratings are opinions and not guarantees of future performance. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.