Xcel Energy price target raised to $85 from $79 at KeyBanc

KeyBanc raised the firm’s price target on Xcel Energy (XEL) to $85 from $79 and keeps an Overweight rating on the shares. The firm notes shares of Xcel are trading at a 1.5x discount to large-cap peers, compared to its historical premium in the 2-4 turns range. KeyBanc believes that the shares present a rare discount to peers. Given Xcel’s history of strong execution and leadership in the renewables space, and the long-term rate base opportunity, the firm maintains its confidence in the name and believes Xcel remains among the strongest equity compounder stories in the sector and thus deserves to trade at a premium valuation.