JPMorgan thinks a new slate of regulation will weigh on Xcel Energy despite the utility's exposure to a transition toward clean energy.
The bank downgraded Xcel Energy to neutral from overweight Friday, with a new $68 per share price target reduced from $79.
XEL YTD mountain Xcel Energy stock has pulled back about 9.4% so far in 2023.
The commission's increase amounts to 9.25% return on equity, the note said, which is below the firm's expectation of roughly 9.6%.
"Overall, XEL remains an attractive regulated story with exposure to energy transition themes across generation and transmission, which underpins an extended growth runway into the next decade," Tonet said.
Persons:
Jeremy Tonet, Tonet, — CNBC's Michael Bloom
Organizations:
JPMorgan, Xcel Energy, Energy, Xcel
Locations:
Minnesota