BMO raises Xcel Energy stock target to $73, keeps rating

Published 23/04/2025, 15:10
BMO raises Xcel Energy stock target to $73, keeps rating

On Wednesday, BMO Capital Markets updated its outlook for Xcel Energy (NASDAQ:XEL), raising the stock’s price target from $69.00 to $73.00, while retaining a Market Perform rating. The adjustment comes ahead of the company’s first-quarter earnings call scheduled for April 24, 2025. The $41.39 billion utility company currently trades near its 52-week high of $73.38, with an overall analyst consensus indicating a Buy rating.

BMO Capital anticipates that Xcel Energy will report first-quarter earnings per share (EPS) of approximately $0.91, reflecting an increase of around 4% year-over-year. The firm’s analyst expects the EPS to align with the consensus estimate, indicating steady performance by the utility company. According to InvestingPro, Xcel Energy has maintained dividend payments for 54 consecutive years, demonstrating remarkable financial stability with a beta of 0.4.

The upcoming earnings call is expected to draw investor attention, particularly concerning management’s insights on various factors that could impact the company’s performance. These include potential effects arising from the loss of transferability in an Individual Retirement Account (IRA) repeal scenario, the influence of tariffs, and any developments in ongoing wildfire litigation, including the likelihood of reaching a settlement. For deeper insights into Xcel Energy’s financial health and valuation metrics, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

Additionally, investors are keen to understand the status of legislation related to wildfires, as these factors could have significant implications for Xcel Energy’s operations and financial outlook.

BMO Capital has maintained its Market Perform rating for Xcel Energy, signaling a neutral stance on the stock’s expected performance relative to the market. The revised price target of $73.00 reflects a mark-to-market adjustment, providing investors with the firm’s latest valuation estimate for the energy company’s shares.

In other recent news, Xcel Energy has issued $1.1 billion in senior notes, with two series of notes set at varying interest rates and maturities. The proceeds are anticipated to support capital expenditures, refinance existing debt, and fund other corporate purposes. Additionally, Public Service Company of Colorado, a subsidiary of Xcel Energy, has issued $1 billion in mortgage bonds to manage its capital structure and fund ongoing operations. These financial activities reflect the company’s strategic financing approach amid current market conditions.

In analyst updates, Jefferies raised its price target for Xcel Energy to $81, maintaining a Buy rating, citing the company’s potential for significant growth in earnings per share and a positive regulatory environment. UBS also increased its price target to $77 but maintained a Neutral rating, acknowledging the company’s potential for attractive total returns despite certain liabilities. Moreover, Xcel Energy announced executive changes with the upcoming retirement of COO Timothy O’Connor, appointing Scott Sharp (OTC:SHCAY) and Michael Lamb to key leadership roles. These leadership transitions are part of Xcel Energy’s ongoing efforts to maintain strong governance and strategic oversight.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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