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Xcel Energy: Balancing Stability and Uncertainty with a Hold Rating

Xcel Energy: Balancing Stability and Uncertainty with a Hold Rating

James Thalacker, an analyst from BMO Capital, reiterated the Hold rating on Xcel Energy (XELResearch Report). The associated price target is $69.00.

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James Thalacker has given his Hold rating due to a combination of factors including Xcel Energy’s recent performance and future outlook. The company’s earnings per share (EPS) for the year fell short of both the analyst’s and consensus expectations, landing at the lower end of its guidance range. Although there was a modest year-over-year increase in EPS, management’s reaffirmation of their long-term growth targets and capital plans suggests stability but not immediate outperformance.
Despite the slight underperformance against utility peers, Xcel Energy’s reaffirmation of its 2025 guidance and long-term EPS growth target indicates a steady, albeit cautious, growth trajectory. The company’s robust capital plan and potential for additional capital opportunities signal positive future developments, but concerns such as wildfire liabilities and regulatory challenges remain a source of uncertainty. Consequently, the stock is seen as maintaining a balanced risk-reward profile, justifying the Hold rating.

In another report released on January 27, Morgan Stanley also maintained a Hold rating on the stock with a $73.00 price target.

XEL’s price has also changed moderately for the past six months – from $57.860 to $67.120, which is a 16.00% increase.

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