Our target price of $107 is based on a mix of 2025 P/E multiple of 24.0x, SOTP, and dividend discount analysis using a 6% cost of equity. The 2025 P/E multiple is a slight premium to the current trading forward multiple to reflect Vogtle, the O&M reduction opportunity, and the growth opportunity in Georgia. We assume a cost of equity of 6.0%, which is a slight difference from the 6.5% CAPM equation given our view that the discount rate will improve once the fundamental outlook is derisked.

Downside risks to our target price include interest rates, capital markets availability and pricing to fund growth plan, potential for a large acquisition that isn’t well received, population and load growth in service territory, and execution risk across business segments.