UBS Raises Xcel Energy Target to $89, Highlights 9% Earnings Growth & Data Center Demand
UBS upgraded Xcel Energy to Buy with a price target raised to $89 from $81, citing a 4% valuation discount to peers despite 9% regulated earnings growth and surging data center demand. The company plans over $60 billion in five-year investments, including 7,000 MW of renewable, gas and storage capacity.
1. UBS Upgrade and Valuation
On February 13, UBS upgraded Xcel Energy from Neutral to Buy and raised the price target to $89 from $81, citing a roughly 4% discount to the broader utility sector despite delivering around 9% fully regulated earnings growth and benefiting from rising data center demand.
2. Five-Year Investment Strategy
The company outlined plans to invest more than $60 billion through 2030 to bolster its grid infrastructure, including upgrades to transmission and distribution networks and the development of 7,000 MW of company-owned renewable, natural gas and energy storage projects across its service areas.
3. Ongoing Earnings Performance
Xcel Energy reported Q4 2025 earnings of $3.80 per share, marking the 21st consecutive year of meeting or exceeding guidance, while completing key projects such as the Sherco solar Phase 2 launch, Harrington coal-to-gas conversion and the Rocky Mountain solar startup.