In a report released today, James Thalacker from BMO Capital upgraded Xcel Energy to a Buy, with a price target of $80.00.
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James Thalacker has given his Buy rating due to a combination of factors that highlight Xcel Energy’s promising growth prospects and attractive valuation. The company is expected to see significant rate base growth, potentially reaching 14%, and an EPS growth exceeding 9%, driven by higher investment opportunities disclosed for 2025 and 2026. This growth potential is not fully reflected in the current share price, which trades at a group average multiple despite Xcel’s peer-leading growth rates.
Additionally, the resolution of the Marshall Fire liability is anticipated to provide clarity and potentially enhance investor confidence in Xcel’s long-term earnings power. The company’s strategic position in a renewables-rich region and its cost-effective decarbonization opportunities further support the positive outlook. These factors collectively create a compelling risk/reward scenario, justifying the upgrade to an Outperform rating.
In another report released on September 10, Bank of America Securities also maintained a Buy rating on the stock with a $78.00 price target.