XEL
The upgrade that wasn’t really an upgrade
BofA Securities just did the classic Wall Street thing: basically saying, “We still like the stock, just slightly more than before.” It lifted Xcel Energy’s price target to $86 from $84 and kept a Buy rating on the utility.
For you, the headline is less about the tiny target bump and more about the fact that analysts still see room for Xcel to keep grinding higher. The shares were trading around $79.01, so BofA’s new target still implies a decent bit of upside — the kind utilities love to sneak in while everyone’s watching louder parts of the market.
What BofA is betting on
The firm expects Xcel’s first-quarter 2026 EPS to come in at $0.89, up from $0.84 a year ago, though still below the $0.94 consensus estimate. Translation: better than last year, but not exactly a victory lap.
BofA says the quarter should get a lift from:
- higher electric and gas sales
- capital rider revenues
- higher rates
- AFUDC earnings
But of course, no utility story gets to be that simple. The note also flags the usual party crashers:
- weaker weather
- higher depreciation
- higher interest expense
- higher property tax expense
- equity dilution
Why investors should care
The big swing factor isn’t just one quarter. BofA says investors will likely focus on Xcel’s regulatory calendar, data center pipeline, capital spending outlook, rate affordability, and wildfire risk. In other words: the stock may act like a sleepy utility, but the actual checklist is packed with spicy little landmines.
The company is also slated to report earnings on April 30, which means this analyst note may end up serving as a preview trailer before the main event.
Big picture: Xcel is still getting the analyst-love treatment, but the real story is whether it can turn all those rate hikes, sales gains, and capital investments into enough earnings juice to justify the optimism.