J.P. Morgan Initiates Xcel Energy With Neutral Rating (XEL)

J.P. Morgan is out with a research report this morning, where it initiates a Neutral rating on Xcel Energy XEL; it has a $23.00 price target on the stock. The JPM analysts said that the company generates stable, predictable 5-7% annual EPS growth, given Xcel’s pure play regulated utilities operate in jurisdictions with constructive regulation which helps ensure timely recovery of its investments through rider and forward test-year mechanisms. As a result, the analysts believe the company deserves a modest premium for predictability, but believe this is offset by a yield below the low end of its peer group range of 5-6.5%. The shares trade in line with its peers’. Thus, the JPM analysts are initiating coverage with a Neutral rating.