Xcel Energy Price Target Raised to $91, Equal Weight Retained
On February 20, Morgan Stanley lifted Xcel Energy’s price target by $7 to $91 while retaining an Equal Weight rating based on revised utility price projections. UBS and BMO Capital also raised their price targets to $89 and $90 respectively, citing a doubled data center backlog and undervalued growth potential.
1. Morgan Stanley Rating and Price Target
On February 20, Morgan Stanley raised its price target on Xcel Energy from $84 to $91 while retaining an Equal Weight rating. The firm cited updated price projections for North American regulated and diversified utilities after noting that utility stocks trailed the S&P in January.
2. UBS and BMO Capital Analyst Actions
On February 13, UBS upgraded Xcel Energy to Buy from Neutral and lifted its price target to $89, highlighting a 4% discount to the utility group and a projected 9% earnings growth rate. On February 6, BMO Capital increased its target from $87 to $90 and maintained an Outperform rating, driven by a doubling of the data center backlog.
3. Data Center Demand and Business Segments
Xcel Energy operates across Regulated Electric, Regulated Natural Gas Utility and other segments, with data center load pipelines growing significantly. Analysts point to the expanded backlog as a key growth catalyst, reflecting rising demand from hyperscale computing and renewable energy partnerships.