Bank of America Upgrades Xcel Energy to ‘Buy’ on Strong Resource Plan and Significant Growth Potential

Bank of America has upgraded its shares of Xcel Energy to ‘Buy’ on the strength of its resource plan, which includes investment of up to $15 billion by 2030 by its Public Service Co. of Colorado subsidiary. The plan sets the stage for years of rate base growth and could lead to more than 14% upside in its stock price over the next 12 months. Xcel’s proposal would add 3,400 MW of wind resources, almost 2,000 MW of solar, and 1,170 MW of storage, and would reduce carbon emissions more than 80% by 2030. Bank of America Global Research analysts said the decision to upgrade Xcel shares is a result of “greater confidence on underlying renewable trends not just in Colorado, but also for further procurements ahead to drive a new, sustained level of spend. BOA analysts also said they are also watching resource procurement by the utility’” Southwestern Public Service subsidiary in Texas to provide further potential growth.