Xcel Energy Could Hit $89 by Year-End as UBS Argues Wildfire Risks Are Already Priced Into $76.75 Stock

1 hour ago 1

Joel South

Tue, March 24, 2026 astatine 9:32 AM CDT 3 min read

Xcel Energy (XEL) trades astatine $76.75, down 5.73% implicit the past week but guided to 2026 EPS of $4.04 to $4.16 supported by a $60 cardinal superior program for transmission and renewables, a doubled 6 GW information halfway pipeline by end-2027 (including Google partnerships), and 23 consecutive years of dividend increases targeting 4% to 6% yearly growth.
UBS chopped its terms people to $89 portion maintaining its Buy rating, arguing the caller selloff has pushed Xcel beneath just worth contempt top-quartile 9%+ EPS maturation and upcoming catalysts, though wildfire liability from the Smokehouse Creek Fire and Texas litigation stay cardinal execution risks.
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Xcel Energy (NASDAQ:XEL) has delivered a 14% summation implicit the past year, and analysts clump astir a statement people of $88.44. UBS chopped its terms people to $89 from $93 portion keeping its Buy rating, arguing the caller selloff has pushed the banal beneath UBS's assessed just value. That people implies meaningful upside from existent levels. But tin XEL realistically scope $89 by extremity of 2026?

UBS remains a purchaser of shares based connected top-quartile EPS maturation of 9%+ and upcoming catalysts that could amended valuation, with the banal present implying sub-7% maturation aft caller underperformance. The steadfast argues that wildfire and regulatory concerns look overly discounted astatine existent levels. With Xcel guiding to 2026 ongoing EPS of $4.04 to $4.16 and a semipermanent EPS maturation people of 6% to 8%+, UBS sees the marketplace mispricing a inferior with 1 of the strongest net way records successful the sector.

$60 cardinal superior plan: Xcel's five-year basal superior expenditure program covering 2026 done 2030 totals $60 billion, targeting transmission, renewables, and grid infrastructure, supporting the complaint basal maturation that drives regulated inferior earnings.
Data halfway request surge: Xcel's contracted information halfway pipeline has doubled to 6 GW by end-2027, with strategical partnerships including Google. The Colorado inferior committee approved a load forecast reflecting 3% compound yearly income maturation done 2031 with astir 5,400 MW of procreation capableness needed, a durable request tailwind.
Dividend maturation consistency: Xcel has raised its dividend for 23 consecutive years, with the existent quarterly payout astatine $0.5925 per stock and an annualized output adjacent 3.1%. The institution targets yearly dividend increases of 4% to 6%.