Xcel Energy price target raised to $84 by BMO on Marshall Fire settlement

Investing.com - BMO Capital raised its price target on Xcel Energy (NASDAQ:XEL) to $84.00 from $80.00 on Thursday, while maintaining an Outperform rating on the utility company’s stock. The $46 billion utility company, currently trading at $77.93, has shown impressive momentum with a 7.98% gain over the past week. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The price target increase follows Xcel Energy’s announcement that it reached agreements in principle to resolve all litigation related to the 2021 Marshall Fire, just before the trial was set to begin.

Xcel Energy expects to pay approximately $640 million related to the settlements before insurance offsets, according to BMO Capital’s research note.

The company "does not admit any fault, wrongdoing or negligence in connection with this resolution," BMO Capital noted in its analysis of the settlement.

BMO Capital expects investor attention will now shift to Xcel Energy’s third-quarter 2025 earnings call, which will likely highlight an update to what the firm describes as the company’s "best-in-class EPS/rate base growth." With analyst targets ranging from $63 to $87, and the stock trading near its 52-week high, investors can access deeper insights and 10 additional ProTips through InvestingPro’s comprehensive analysis tools.

In other recent news, Xcel Energy announced it reached settlements to resolve all litigation related to the 2021 Marshall Fire in Boulder County, Colorado. The company’s subsidiary, Public Service Company of Colorado, will pay approximately $640 million, with $350 million covered by remaining wildfire liability insurance. This settlement comes as trials were set to begin, providing closure to claims from subrogation insurers, public entity plaintiffs, and individual plaintiffs. In another development, Xcel Energy and its subsidiary, Northern States Power Company, received recommendations on their 2024 Minnesota electric rate case. The company had initially filed for a two-year, $491 million revenue increase, with interim rates of $224 million for 2025, but the Minnesota Public Utilities Commission approved $192 million in interim rates. Analyst firms have also been active in their evaluations of Xcel Energy. Goldman Sachs reiterated its Buy rating with a price target of $87.00, while BMO Capital upgraded the stock from Market Perform to Outperform, raising its price target to $80.00. Additionally, Mizuho adjusted its price target to $80.00, maintaining an Outperform rating.

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