Barclays upgrades Xcel Energy, says Texas wildfire selloff overdone

Barclays upgraded Xcel Energy to Overweight from Equal Weight with a price target of $54, down from $61. The analyst sees the company’s recent market capitalization loss of $4B from the Texas panhandle Wildfires as overdone. Wildfire risk is now a part of the Xcel story and a discounted multiple warranted, but this now seems more than priced into the shares, the analyst tells investors in a research note. While the Smokehouse event is likely to remain an overhang on the stock, the shares more than discount the potential liabilities that could materialize from wildfire claims, contends Barclays.