- Xcel Energy (XEL -1%) is upgraded to Overweight from Equal Weight but with a reduced $39 price target, cut from $41, at Barclays in expectation of a constructive outcome to Northern States Power electric rate case, which the firm says should remove a long-standing overhang from the stock and largely clear the regulatory calendar.
- The firm's lower stock price target is predicated on XEL moving up to a 10% premium to the 2017 regulated utility industry average P/E multiple from its current 4% discount; taking the price appreciation in conjunction with the implied dividend yield of 3.3% results in total return potential of ~15%.