Bank of America Securities analyst Paul Cole maintained a Buy rating on Xcel Energy (XEL – Research Report) today and set a price target of $63.00.
Paul Cole has given his Buy rating due to a combination of factors regarding Xcel Energy’s performance and outlook. Xcel Energy outperformed expectations in the first quarter of 2024, with earnings per share surpassing both the Bank of America’s and consensus estimates. This positive outcome was driven mainly by the company’s NSP-Minnesota subsidiary, which saw significant earnings growth from the previous year. The growth in earnings is attributed to successful recovery of investments in infrastructure and a reduction in operations and maintenance expenses, although this was somewhat balanced by increases in interest and depreciation costs.
Looking ahead, Cole’s confidence in maintaining a Buy rating is reinforced by Xcel’s reaffirmed earnings guidance and its steady growth targets. Despite the potential liability from the Smokehouse Creek Fire incident, Xcel Energy has demonstrated proactive management by setting up a claims process and securing insurance for the expected losses. Cole sees value in Xcel’s robust projected earnings growth rate and its consistent execution history. The company’s capital expenditure prospects and risk management measures, especially as it enters the wildfire season, further support the positive outlook, justifying the Buy rating.
In another report released on April 23, Barclays also maintained a Buy rating on the stock with a $56.00 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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