Stock Price & Analysis

Buy XEL stock as it shows stability with growth prospects. Hold for long-term gains.

Price Prediction for XEL Stock in 2025

Based on current trends and analyst expectations, Xcel Energy (XEL) is projected to reach a price target of $73 to $78 by the end of 2025.

Reasons for the Prediction:

1. Analyst Consensus:

   • Morgan Stanley raised its price target to $78 from $75, citing strong demand for utilities and Xcel's renewable energy initiatives.
   • Wells Fargo also raised its target to $75, reflecting confidence in Xcel's operational performance and long-term growth.

2. Strategic Partnerships:
   Xcel Energy's collaboration with Tesla and Itron to deploy a virtual power plant in Colorado highlights its commitment to renewable energy and grid modernization, which could drive long-term growth.

3. Dividend Growth:
   Xcel recently increased its dividend by 4.1%, marking its 22nd consecutive annual hike. This signals strong financial health and investor confidence.

4. Renewable Energy Focus:
   The company's emphasis on clean energy initiatives aligns with global trends, potentially attracting ESG investors and supporting higher valuations.

The S1 support level for XEL Stock is $68 ,The R1 resistant level for XEL Stock is $70.95.

As of the end of day on 2025-04-01, the price of XEL Stock was $70.83.

The target price for XEL Stock according to analyst rating is 73.44, with the highest price target at 80.00 and the lowest at 68.00. Analysts have a Moderate Buy rating on XEL Stock overall.

The market cap of XEL is $40.6B.

Xcel Energy Inc. (XEL) appears to be fairly valued based on current market conditions and financial metrics. Here's a concise analysis:

1. Valuation Metrics:

   • PE Ratio: 19.64 (higher than the industry average of 15-20).
   • EV/EBITDA: 11.85 (slightly above peer averages).
   • Dividend Yield: 3.24% (attractive but not exceptional).

2. Analyst Sentiment:

   • Mixed ratings with a consensus "Hold" and price targets around $70-$78.

3. Recent Developments:

   • Collaboration with Itron and Tesla on a virtual power plant project, enhancing grid management and renewable energy integration.

4. Technical Analysis:

   • Stable stock price with limited upward momentum, indicating fair valuation.

In conclusion, while XEL is not significantly overvalued, its current price reflects its stable cash flows and dividend yield. Investors may not see substantial upside unless unexpected positive developments occur.

Xcel Energy Inc. is an electric and natural gas delivery company. The Company provides a comprehensive portfolio of energy-related products and services to approximately 3.8 million electric customers and 2.2 million natural gas customers through four utility subsidiaries, NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. The Company operates through two segments. The Regulated Electric Utility segment generates, purchases, transmits, distributes and sells electricity in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The Regulated Electric Utility segment also includes wholesale commodity and trading operations. The Regulated Natural Gas utility segment purchases, transports, stores, distributes and sells natural gas primarily in portions of Colorado, Michigan, Minnesota, North Dakota and Wisconsin.

Xcel Energy (XEL) is expected to reach a stock price of $90 by 2030, driven by its strong focus on clean energy initiatives and grid modernization efforts. The company's commitment to renewable energy and infrastructure investments positions it well for long-term growth in the utility sector. Analysts remain optimistic about XEL's prospects, with current price targets suggesting significant upside potential over the next five years.

XEL has a total of 12100 employees.