Analysts Turn Bullish on Xcel Energy (XEL) Amid Data Center Boom

Core Viewpoint - Xcel Energy Inc. is highlighted as a strong investment opportunity, particularly following an upgrade from UBS, which raised its price target and emphasized the company's growth potential driven by data center electricity needs and regulatory support [1][2]. Group 1: Analyst Upgrade and Market Position - UBS upgraded Xcel Energy from Neutral to Buy, increasing the price target from $81 to $89, indicating strong confidence in the company's future performance [1]. - Analyst William Appicelli noted a steady 9% earnings-per-share (EPS) expansion, supported by full regulatory oversight and increasing demand from data centers [2]. - The expected data center load was recently increased to 4 gigawatts from 2 gigawatts, reflecting a significant growth opportunity [2]. Group 2: Financial Performance - Xcel reported Q4 2025 ongoing EPS of $0.96, which was at the lower end of Wall Street's estimates but represented an 18.5% year-over-year increase [3]. - Quarterly revenue reached $3.56 billion, slightly below the forecast range of $3.64-$3.77 billion, but still showed a 14.1% year-over-year growth, attributed to a 14.2% increase in electric and natural gas sales [4]. - The company reaffirmed its FY2026 ongoing EPS guidance of $4.04-$4.16 and projected a long-term annual growth rate of 6-8% through 2030, supported by a $60 billion capital expenditure plan [4]. Group 3: Company Overview - Xcel Energy is a regulated utility company providing electricity to 3.7 million customers and natural gas to 2.1 million customers across eight states [5].