Xcel Energy seen undervalued with UBS targeting $89 by 2026 amid growth and wildfire risk recovery

Xcel Energy's stock has gained 14% in the past year, but UBS lowered its price target to $89 from $93, maintaining a Buy rating. UBS believes the stock is undervalued due to excessive market concerns over wildfire liabilities and regulatory risks. Key growth drivers include a $60 billion capital plan for infrastructure, a surge in data center demand, and consistent dividend growth. To reach $89 by 2026, Xcel must resolve wildfire liabilities, secure favorable rate cases, and continue expanding its data center pipeline. Despite risks, UBS views the stock as having strong upside potential based on solid earnings and growth prospects.