UPDATE: Goldman Sachs Initiates Coverage on Xcel Energy with Neutral Rating, $29 PT
In a report published Wednesday, Goldman Sachs Group initiated coverage on Xcel Energy (NYSE: XEL) with a Neutral rating and $29.00 price target.
Goldman Sachs noted, “We initiate coverage of Xcel Energy (XEL), a $13bn market cap Regulated Utility with a Neutral rating and a $29 P/E-based 12-month target price, implying 11% total return. Our 2012-2014 EPS forecasts are $1.80/$1.92/$2.03, with our 2013/2014 forecasts 2%/3% above consensus. We expect XEL to deliver above-average EPS growth and returns, but initiate with a Neutral rating given relative valuation, a rate case overhang in Minnesota and below-average dividend growth. Among Regulated Utilities, we prefer Buy-rated NU (CL) and DUK among large caps as well as AWK (CL), GXP and CNL among small/mid caps.”
Xcel Energy closed on Tuesday at $27.28.
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