Skip to main content

Market Overview

Xcel Energy's Capital Spending, Likelihood Of Colorado Project Approval Fuel Mizuho's Upgrade


Xcel Energy Inc (NASDAQ: XEL)'s s fiscal year 2018 results released Feb. 7 prompted Mizuho Securities to revisit its thesis on this utility holding company.

The Analyst

Analyst Paul Fremont upgraded Xcel Energy from Neutral to Buy, with a price target of $47.

The Thesis

Higher capital spending at Xcel Energy's utility subsidiaries, ability to retain tax reform benefits in its jurisdictions, lower effective tax rates and higher margins at its utilities, prompted upward revisions to the 2018-2020 earnings per share estimates for the company, Fremont said in a Tuesday note.

The analyst increased his 2019-2020 earnings per share estimates by roughly 10 cents each, while also initiating his 2021 estimate at $2.91.

Additionally, Mizuho sees additional upside opportunity, given the high likelihood of the Colorado Energy Project, or CEP, getting approval. If the CEP is approved, the firm sees 8-10 cents of accretion, assuming the project is funded with a mix of debt and equity.

Despite the higher levels of holding company debt, relative to group, Fremont estimates Xcel Energy's FFO/debt to be in the range of 16-17 percent.

The Price Action

Xcel shares are down about 1 percent over the past year. At time of writing, shares were up 2.5 percent on the day at $45.28.

Related Links:

NextEra 'The Most Credible Drop-Down Story In The Market,' BofA Says In Double Upgrade

Utilities Slump Could Be Nearing Its End

Latest Ratings for XEL

Feb 2021Morgan StanleyMaintainsUnderweight
Jan 2021Morgan StanleyMaintainsUnderweight
Jan 2021KeyBancMaintainsOverweight

View More Analyst Ratings for XEL
View the Latest Analyst Ratings


Related Articles (XEL)

View Comments and Join the Discussion!

Posted-In: Mizuho Securities Paul FremontAnalyst Color Upgrades Analyst Ratings

Latest Ratings

VEEVSVB LeerinkMaintains294.0
SNMSFRBC CapitalUpgrades44.0
SGPYYGoldman SachsUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at