Xcel Energy Inc. (NASDAQ:XEL) is included among the The 11 Best Utility Stocks to Invest in According to Hedge Funds.
Xcel Energy Inc. (NASDAQ:XEL) is engaged in the generation, purchase, transmission, distribution and sale of electricity in the United States. It operates through the Regulated Electric Utilities and Regulated Natural Gas Utilities segments.
On December 16, Morgan Stanley lowered its price target on Xcel Energy Inc. (NASDAQ:XEL) from $84 to $79, while maintaining an “equal weight” rating on the stock. The analyst noted that utility sector performance will be boosted by strong growth in data center demand next year, but also warned that rising electricity bills could increase political and regulatory risk, especially given next year’s midterm elections.
Xcel Energy Inc. (NASDAQ:XEL) was dealt another significant blow on December 16 when Texas Attorney General Ken Paxton sued the utility for “gross negligence” in setting a massive wildfire in 2024. Responsible for three deaths and more than $1 billion in damages, the Smokehouse Creek Fire was the largest wildfire in state history.
The lawsuit seeks to compensate for economic losses and civil penalties for violations of state laws. Additionally, it seeks a court order requiring 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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