Xcel Energy price target raised to $68 from $62 at KeyBanc

KeyBanc raised the firm’s price target on Xcel Energy to $68 from $62 and keeps an Overweight rating on the shares. The firm notes Xcel’s shares performed in line with the index last year as regulatory headwinds and wildfires mired the headlines. As a result, shares, now trading at about 1.5-times premium to large-cap peers, remain below its historical premium in the 2-4-times range. KeyBanc believes the market is underappreciating the substantial growth opportunities that Xcel has, over and above the existing base-case $34B capex plan. Given Xcel’s history of strong execution and leadership in the renewables space, and the long-term rate base opportunity in CO, the firm maintains its confidence in the name and believes Xcel remains among the strongest equity compounder stories in the sector and thus deserves to trade at a premium valuation.