Xcel Energy price target lowered to $62 from $71 at KeyBanc

KeyBanc analyst Sophie Karp lowered the firm’s price target on Xcel Energy to $62 from $71 to reflect the refreshed bond-implied “fair” price-to-earnings multiple of 14.1-times and a 1.0-time sector adjustment, while keeping an Overweight rating on the shares. The firm notes Xcel’s shares have underperformed the index this year, resulting in shares now trading at just a 1-time premium to large-cap peers, substantially below its historical premium in the 2-4-times range. The underperformance can largely be attributed to recent regulatory headwinds and wildfires in the headlines, but KeyBanc believes the market is underappreciating the substantial growth opportunities that Xcel has, over and above the existing base-case $29.5B capex plan.