Jefferies raises Xcel Energy stock price target to $80 on growth outlook

Published 11/07/2025, 11:58
Jefferies raises Xcel Energy stock price target to $80 on growth outlook

Investing.com - Jefferies has raised its price target on Xcel Energy (NASDAQ:XEL) to $80.00 from $79.00 while maintaining a Buy rating on the stock. The utility company, with a market capitalization of $39.5 billion, currently trades at a P/E ratio of 20.1x. According to InvestingPro data, 7 analysts have recently revised their earnings estimates upward for the upcoming period.

The firm cited momentum on several fronts for the utility company, including progress on line-of-sight capital expenditure upside of more than $10 billion, with an additional estimated upside potential of over $16 billion to follow.

Jefferies noted that Xcel Energy’s data center pipeline supports load growth of more than 5%, while the company’s earnings per share compound annual growth rate guidance of 6-8% remains firm, with potential to exceed the upper end of that range.

The research firm identified a potential Marshall Fire resolution in the fourth quarter of 2025 as a re-rating catalyst for the stock.

Jefferies described Xcel Energy as having a "compelling valuation with unique catalysts" and characterized it as the "top large-cap utility set-up for 2H25."

In other recent news, Xcel Energy has been active on multiple fronts. Northern States Power Company, a subsidiary of Xcel Energy, has filed a request with the South Dakota Public Utilities Commission for a $44 million annual electric rate increase, which represents a 15% rise. The proposed increase is based on a 2024 historic test year and includes a requested return on equity of 10.3%. Additionally, Northern States Power issued $250 million in 5.65% First Mortgage Bonds due in 2054, through an underwriting agreement involving BNP Paribas (OTC:BNPQY) Securities Corp., CIBC (TSX:CM) World Markets Corp., and RBC Capital Markets, LLC. In executive news, Xcel Energy appointed Ryan Long as executive vice president and chief legal and compliance officer, succeeding Rob Berntsen. The company also held its annual shareholders’ meeting, where shareholders approved executive compensation and the appointment of Deloitte & Touche LLP as the independent auditor for the year. These developments demonstrate Xcel Energy’s ongoing strategic and financial activities.

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