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Investing.com - Jefferies raised its price target on Xcel Energy (NASDAQ:XEL) to $94.00 from $92.00 on Monday, while maintaining a Buy rating on the utility company’s stock. Xcel currently trades at $80.58, just 3% below its 52-week high of $83.01, after delivering impressive returns of 23.31% year-to-date and 19.86% over the past year.
The firm cited Xcel Energy’s growth through 2030 as among the best of large-cap utilities, with expectations for a steady cadence of positive updates in fiscal year 2026. This optimistic outlook aligns with the broader analyst sentiment, as Xcel maintains a Buy consensus recommendation with a high target of $97.
Jefferies included $5.5 billion of Public Service Company of Colorado (PSCO) generation upside in its analysis, which drives its earnings per share and rate base compound annual growth rate projections to 9.6% (versus the company’s 9% guidance) and 12.4% (versus 11%), respectively.
The research firm noted it is increasingly above consensus estimates in outer years, with a focus on execution and Colorado rate cases.
Jefferies views Xcel Energy as having compelling upside and favorable risk/reward, noting the stock trades at an in-line fiscal year 2028 price-to-earnings ratio compared to peers despite having one of the highest growth rates in the sector.
In other recent news, Xcel Energy Inc. reported its third-quarter 2025 earnings, showing a slight miss in earnings per share (EPS) compared to analyst forecasts. The company posted an EPS of $1.24, which was below the expected $1.32. However, Xcel Energy’s revenue slightly exceeded projections, reaching $3.92 billion against the forecasted $3.89 billion. Additionally, Xcel Energy’s subsidiary, Northern States Power Company-Wisconsin, received a verbal decision from the Public Service Commission of Wisconsin for multi-year rate increases. The electric utility rates are set to rise by approximately $126 million over two years, with $68 million in 2026 and an additional $58 million in 2027. The natural gas utility rates will increase by about $22 million, with $18 million in 2026 and an incremental $4 million in 2027. These developments reflect ongoing adjustments in the company’s financial strategy and regulatory approvals.
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