Barclays joins others in downgrading Southern Company on Vogtle risk
Barclays analyst Eric Beaumont downgraded Southern Company to Equal Weight from Overweight and lowered his price target for the shares to $48 from $51. The company when reported Q2 increased its cost estimate for Vogtle by $700M, established a contingency reserve of $400M, recorded a pre-tax charge of $1.1B and announced the need for $800M of additional equity, Beaumont tells investors in a research note. The analyst adjusted his estimates to reflect dilution from the additional equity and cut his price target to reflect the near-term risk profile of the Vogtle project. Vogtle risk skews to the negative in the short term on the ownership vote and VCM 19 filing, Beaumont contends. Three other firms downgraded Southern Company this morning.