Xcel Energy Faces Investigation, Analysts Project 6.48% Upside

Friday, Aug 15, 2025 10:19 pm ET1min read

Xcel Energy faces investigation over Texas wildfires, with analysts projecting a 6.48% potential upside from the current stock price. However, GuruFocus estimates suggest a possible downside based on historical trading multiples, past business growth, and future business performance predictions. The investigation by Texas Attorney General Ken Paxton may impact the stock price, with investors considering these data points and forecasts when evaluating potential investment strategies involving Xcel Energy.

Houston, TX - Texas Attorney General Ken Paxton has initiated an investigation into several utility companies, including Xcel Energy, Osmose Utilities Services, and Southwestern Public Services, following the Smokehouse Creek and Windy Deuce Fires. The investigation aims to determine if any Texas laws were violated in relation to the wildfires [1].

The investigation comes amidst allegations that utility companies may have sacrificed infrastructure maintenance and public safety for environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) goals, according to Paxton's statement [1]. Xcel Energy, in particular, has been linked to the Smokehouse Creek fire, which has destroyed numerous homes and cattle ranches, making it the largest wildfire in Texas history [1].

The stock of Xcel Energy has seen a 1.6% drop in mid-day trading, currently standing at $71.27, following the announcement of the investigation [1]. Analysts project a potential 6.48% upside from the current stock price, but GuruFocus estimates suggest a possible downside based on historical trading multiples, past business growth, and future performance predictions [2].

Investors are advised to consider these data points and forecasts when evaluating potential investment strategies involving Xcel Energy. The investigation by Texas Attorney General Ken Paxton may significantly impact the stock price, and investors should stay informed about the developments.

References:
[1] https://www.usnews.com/news/top-news/articles/2025-08-15/texas-ag-launches-investigation-into-xcel-energy-other-utilities-connected-to-wildfires
[2] https://www.marketscreener.com/news/texas-ag-launches-investigation-into-xcel-energy-other-utilities-connected-to-wildfires-ce7c51ded188f726

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