Xcel Energy (XEL) Price Target Trimmed at Mizuho. Here is Why

Xcel Energy Inc. (NASDAQ:XEL) is included among the 12 Best Utility Stocks to Buy Now According to Hedge Funds.

Xcel Energy (XEL) Price Target Trimmed at Mizuho. Here is Why

Xcel Energy Inc. (NASDAQ:XEL) is a major US electricity and natural gas company with operations in 8 Western and Midwestern states.

On June 23, Mizuho lowered its price target on Xcel Energy Inc. (NASDAQ:XEL) from $94 to $91, but kept its ‘Outperform’ rating on the shares. The revised target still reflects an upside of almost 12% from the current price level.

According to Mizuho, Xcel “remains a dislocated stock despite continued execution in the regulatory environment”. The utility has resolved its Colorado electric, New Mexico electric, and Minnesota gas rate cases, and even received a verbal order regarding its Minnesota electric rate case from the state’s Public Utilities Commission on June 18.

The analyst firm believes that the “regulatory de-risking”, combined with the end of wildfire season in August, could serve as potential catalysts for a re-rating of XEL.

Xcel Energy Inc. (NASDAQ:XEL) is targeting ongoing earnings of $4.04 to $4.16 per share for FY 2026, indicating a YoY growth of almost 8% at the midpoint. Moreover, the company remains confident to deliver 6% to 8+% long-term earnings growth and expects to deliver 9% EPS growth on average through 2030.

While we acknowledge the risk and potential of XEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XEL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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