Ross Fowler, an analyst from Bank of America Securities, reiterated the Buy rating on Xcel Energy. The associated price target was raised to $84.00.
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Ross Fowler has given his Buy rating due to a combination of factors including the resolution of litigation related to the 2021 Marshall Fire. Xcel Energy has reached a settlement to resolve all related claims, which removes the uncertainty of a jury trial and is seen as a positive development for the company. This settlement involves a payment of $640 million, partially covered by insurance, and Xcel Energy maintains that its equipment did not cause the fire.
Additionally, Xcel Energy is expected to update its capital spending plans and rate base growth on the Q3’25 earnings call. The company has identified potential for an additional $15 billion in spending, which could further accelerate investments in renewables and infrastructure projects. This anticipated increase in capital spending is likely to enhance the company’s rate base growth beyond the current guidance of 9.4%. Consequently, Ross Fowler has raised the price objective for Xcel Energy to $84, reflecting an updated peer group average P/E multiple.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $79.00 price target.