In a report released today, Paul Cole from Bank of America Securities reiterated a Buy rating on Xcel Energy (XEL – Research Report), with a price target of $66.00.
Paul Cole’s rating is based on a solid performance by Xcel Energy in the first quarter of 2024, where the company reported an adjusted EPS that exceeded both the Bank of America and consensus estimates. The improvement in earnings per share from the previous year was driven by reduced costs of gas sold and transported, decreased electric fuel and purchased power costs, lower operations and maintenance expenses, and a higher allowance for funds used during construction. These positive factors helped offset the negative impacts of lower natural gas and electric revenues, as well as increased depreciation, amortization, and interest expenses.
Furthermore, Cole’s Buy rating is reinforced by Xcel Energy’s consistent execution track record, its adept management in handling regulatory environments across multiple jurisdictions, and its promising growth outlook. Xcel Energy has reaffirmed its earnings guidance and capital expenditure plans, indicating confidence in sustained earnings growth at or above targets and dividend growth. Additionally, the company’s management has provided a reassuring regulatory update and has proactively addressed issues related to the Smokehouse Creek Fire, which is seen as a sign of strong corporate governance. These well-rounded attributes contribute to the decision to raise the price objective to $66, reflecting a positive stance on the company’s future performance.
In another report released on April 26, Evercore ISI also maintained a Buy rating on the stock with a $59.00 price target.
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Xcel Energy (XEL) Company Description:
Xcel Energy Inc. engages in generating, purchasing, transmitting, distributing, and selling electricity. It generates electricity through nuclear, natural gas, coal, hydroelectric, wood/refuse, solar, and wind energy sources. The company sells to residential, commercial, and industrial customers in eight Western and Midwestern states.
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