Update shared on23 Sep 2025
Fair value Increased 0.65%Analysts raised Xcel Energy’s price target slightly to $78.08, citing stronger-than-expected investment opportunities, above-peer earnings growth, and underappreciated long-term benefits from nuclear and renewables.
Analyst Commentary
- Bullish analysts point to Xcel's higher-than-expected investment opportunities, with potential rate base growth approaching 14% and earnings growth above 9%, making the current valuation attractive.
- Xcel trades at a group average multiple despite demonstrating peer-leading rate base and earnings growth, representing a compelling entry point.
- Utilities sector outperformance versus the S&P and revamped sector price targets contributed to increased optimism.
- Long-term advantages of nuclear energy and positive large-scale renewables and residential solar guidance are underappreciated in the market, supporting upward price revisions.
- Visibility into $15 billion of additional capital expenditures not included in the base plan adds further upside to Xcel Energy’s growth prospects.
What's in the News
- Completed a $2.46 billion follow-on equity offering and filed for an additional $4 billion follow-on equity offering via at-the-market offerings.
- Reaffirmed 2025 earnings guidance of $3.75 to $3.85 per share, confident in delivering long-term earnings growth in the upper half of its 6% to 8% target range.
- Announced a major portfolio of new and extended generation resources in Texas and New Mexico, adding 5,168 MW of new capacity by 2030 through 17 projects across dispatchable, wind, solar, and storage technologies, supporting rapid regional demand growth.
- Dropped from the Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for Xcel Energy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $77.57 to $78.08.
- The Future P/E for Xcel Energy remained effectively unchanged, moving only marginally from 20.98x to 21.12x.
- The Consensus Revenue Growth forecasts for Xcel Energy remained effectively unchanged, at 7.6% per annum.
Disclaimer
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