UPDATE: Jefferies Upgrades Xcel Energy on Valuation

In a report published Wednesday, Jefferies analyst Paul B. Fremont upgraded the rating on

from Hold to Buy, but lowered the price target from $32.50 to $31.00. In the report, Jefferies noted, “We are upgrading Xcel Energy to Buy from Hold based on valuation. The stock is currently trading at an 8% P/E discount to our 2015E group average multiple. Despite a difficult political environment in Minnesota the company was able to achieve a reasonable outcome in its NSP-Minnesota rate case. Management has a proven track record in rate cases that should allow for multiple expansion.” Xcel Energy closed on Tuesday at $27.72.