Analyst James Thalacker of BMO Capital maintained a Hold rating on Xcel Energy (XEL – Research Report), boosting the price target to $73.00.
James Thalacker has given his Hold rating due to a combination of factors that include Xcel Energy’s expected earnings per share (EPS) for the first quarter of 2025 aligning closely with market consensus. The anticipated EPS of $0.91 represents a modest year-over-year growth driven by favorable weather conditions, rate relief, and increased sales. However, these positive aspects are counterbalanced by operational expenses and share dilution, particularly due to front-loaded wildfire mitigation spending.
Additionally, Thalacker’s rating considers the potential impacts of regulatory changes, such as the loss of transferability in an IRA-repeal scenario and tariffs, which could affect the company’s financial strategy. The ongoing wildfire litigation and its potential settlements also play a significant role in maintaining a cautious outlook. Despite Xcel Energy’s strong position in renewable energy and its attractive valuation, these uncertainties contribute to the Hold rating.
Thalacker covers the Utilities sector, focusing on stocks such as Centerpoint Energy, CMS Energy, and Duke Energy. According to TipRanks, Thalacker has an average return of 12.7% and a 63.69% success rate on recommended stocks.