Xcel Energy Inc. (NASDAQ:XEL) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.
Xcel Energy Inc. (NASDAQ:XEL) engages in the generation, purchasing, transmission, distribution, and sale of electricity in the United States. It operates through the Regulated Electric Utility and Regulated Natural Gas Utility segments.
On December 16, Morgan Stanley lowered its price target on Xcel Energy Inc. (NASDAQ:XEL) from $84 to $79, while keeping an ‘Equal Weight’ rating on the shares. The analyst noted that the performance of the utilities sector will be driven by the heavy data center demand growth next year, but also cautioned that the rising electricity bills could increase political and regulatory risk, especially given the midterm elections next year.
Xcel Energy Inc. (NASDAQ:XEL) received another significant blow on December 16 when the Attorney General of Texas, Ken Paxton, sued the utility for ‘blatant negligence’ in causing a massive wildfire in 2024. Responsible for three deaths and over $1 billion in damages, the Smokehouse Creek fire was the largest wildfire in the state’s history.
The lawsuit seeks to compensate for economic losses and civil penalties for state law violations. Moreover, it seeks a court order to require Xcel Energy Inc. (NASDAQ:XEL) to take corrective action to prevent a similar tragedy in the future. However, the utility responded by expressing disappointment with the lawsuit and stating that it has established a fund for wildfire victims, with $361 million in compensation already paid.
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Disclosure: None.
