My Photo Buddy/iStock via Getty Images
Xcel Energy (NASDAQ:XEL) +3.4% in Monday’s trading after at least four brokerages upgraded the stock following the wildfire in Smokehouse Creek, Texas, that is now mostly contained, and saying the company’s ultimate damages are not likely to exceed its insurance coverage.
Citi Sees Opportunity
Citi upgrades Xcel (XEL) to Buy from Neutral with a $71 price target, pointing to the ~87% containment of the Smokehouse Creek fire as a sign that liability can be assessed with more confidence, making it a favorable time to upgrade the stock.
Wolfe Research Weighs In
Wolfe Research raises Xcel (XEL) to Outperform from Peer Perform with a $58 PT, dismissing concerns over Texas wildfire risks as exaggerated and likely falling below the company’s $500M insurance liability.
Analysts on Board
Analysts at Keybanc and Barclays also join the optimism, raising the stock to Overweight with respective $68 and $54 price targets, indicating a positive outlook on the company’s future prospects.
A Reversal of Fortunes
Xcel (XEL) shares had endured a tumultuous period, plunging 16% in the five trading sessions after first revealing on February 28 the potential connection of its equipment to the Smokehouse Creek fire.