Xcel Energy's Upside Potential to $89 by Year-End: A Closer Look at UBS' Argument

Xcel Energy (XEL) trades at $76.75, down 5.73% over the past week, but guided to 2026 EPS of $4.04 to $4.16. UBS cut its price target to $89 while maintaining its Buy rating, arguing that recent selloffs have pushed XEL below fair value. The firm sees top-quartile EPS growth and upcoming catalysts as key drivers, despite wildfire liability and litigation risks. XEL's five-year capital plan totals $60 billion, targeting transmission, renewables, and grid infrastructure, while its contracted data center pipeline has doubled to 6 GW by end-2027. The company has raised its dividend for 23 consecutive years, targeting annual increases of 4% to 6%.