UBS lowers Xcel Energy stock price target to $89 on valuation

Investing.com - UBS cut its price target on Xcel Energy Inc. shares (NASDAQ:XEL) to $89 from $93 while keeping a Buy rating on the stock. The $48 billion utility currently trades at $76.95, well below the revised target.

The firm maintained its positive stance on the utility company despite the reduced price target.

UBS stated that recent stock weakness appears unjustified. The stock has declined 5.5% over the past week, though InvestingPro data shows the company has maintained dividend payments for 55 consecutive years and offers a 3.08% dividend yield—hallmarks of utility sector stability. The stock generally trades with low price volatility, trading at 22.6 times earnings.

The firm noted that positive catalysts are expected with Colorado generation approvals in early to mid-April.

UBS also pointed to anticipated regulatory resolution in Colorado and Minnesota as upcoming developments for the company. For deeper analysis, investors can access Xcel Energy’s comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro, which transforms complex data into actionable intelligence.

In other recent news, Xcel Energy Inc. has been active in the financial markets, issuing $800 million in 5.75% junior subordinated notes due in 2056. This issuance was conducted under a registration statement filed with the Securities and Exchange Commission. Additionally, Public Service Company of Colorado, a subsidiary of Xcel Energy, issued $1.3 billion in first mortgage bonds in two series, with maturities in 2029 and 2036. Northern States Power Company, another Xcel Energy subsidiary, also issued $1.2 billion in first mortgage bonds, with maturities extending to 2036 and 2056.

In a related development, Argus has raised its price target for Xcel Energy to $86 from $78, maintaining a Buy rating due to sector momentum and growth potential. In leadership changes, Xcel Energy has appointed Rob Cain as the new chief technology officer, replacing Tim Peterson. Cain will focus on infrastructure modernization and cybersecurity, among other responsibilities. These developments reflect Xcel Energy’s ongoing financial and strategic initiatives.

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