My Photo Buddy/iStock via Getty Images
Xcel Energy (NASDAQ:XEL) +3.4% in Monday’s trading after at least four brokerages upgraded the stock following the wildfire in Smokehouse Creek, Texas, that is now mostly contained, and saying the company’s ultimate damages are not likely to exceed its insurance coverage.
Citi upgrades Xcel (XEL) to Buy from Neutral with a $71 price target, saying the ~87% contained Smokehouse Creek fire “improves confidence in assessing liability” and makes it “a compelling time to upgrade the stock.”
Wolfe Research raises Xcel (XEL) to Outperform from Peer Perform with a $58 PT, believing Texas wildfire risks are “way overblown” and likely below the company’s $500M insurance liability.
Analysts at Keybanc and Barclays also raise the stock to Overweight with respective $68 and $54 price targets.
Xcel (XEL) shares sank 16% in the five trading sessions after first disclosing on February 28 the potential involvement of its equipment in the Smokehouse Creek fire.