Deutsche Bank Has Hold Rating On Southern Company

Deutsche Bank is out with a research report on Southern Company SO and it has a Hold rating and a $40 price target on shares. In a note to clients, Deutsche Bank writes, "SO reported Q2 EPS of $0.71 ($0.70 on a diluted basis) beating our $0.63E by $0.08. In light of a stronger-than-anticipated Q2, we are raising our 2011E by $0.05 to $2.55, but maintaining our longer-term outlook and $40 price target. SO remains a core regulated utility, with decent LT earnings growth and an attractive yield although uncertainty related to the Vogtle nuclear project is an ongoing overhang. We see limited total return potential at the current levels and reiterate our Hold rating." Shares of SO gained 47 cents to close at $40.20 yesterday.