Ross Fowler, an analyst from Bank of America Securities, maintained the Buy rating on Xcel Energy (XEL – Research Report). The associated price target is $77.00.
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Ross Fowler has given his Buy rating due to a combination of factors that highlight Xcel Energy’s potential for growth despite some short-term challenges. The company’s Q1’25 earnings per share (EPS) were below expectations, primarily due to increased expenses, which were anticipated to be front-loaded in the year. However, Xcel Energy reaffirmed its annual EPS and growth guidance, indicating confidence in its financial outlook.
Additionally, Xcel Energy’s revenue growth, driven by favorable rate case outcomes and fuel cost recovery, was offset by higher operational costs. Despite these challenges, the company maintains a strong growth projection with an ongoing EPS guidance of $3.75-$3.85 and an EPS growth rate of 6%-8%. Furthermore, the company’s dividend growth is expected to be between 4%-6%. These factors, combined with a stable financing plan and ongoing data center expansion, support the Buy rating.
In another report released on April 22, Barclays also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of XEL in relation to earlier this year.