- Xcel Energy (XEL +0.9%) is upgraded to Neutral from Sell with a $40 price target at UBS, which says XEL has successfully implemented a potential “rate stayout” in Minnesota.
- UBS says regulatory risk appears to be declining vs. the historic trend of consistent annual Minnesota rate case filings, and that while other states remain in the mix including both Texas and New Mexico, few controversial issues are likely to detail the XEL story through the near-term.
- A further $300M of smart grid upgrades in Minnesota slated for ~2018 looks likely, the firm says, expecting XEL to maintain its EPS growth guidance of 4%-6%.