TIKR Model Flags 'Sell' for Xcel Energy Despite Ambitious Data Center Expansion

Xcel Energy is projected to achieve sustained growth through 2026, fueled by an ambitious plan to double its data center capacity from 3 GW to 6 GW by 2027. This expansion is supported by a significant $60 billion capital investment strategy. However, a valuation model from TIKR.com suggests a "Sell" recommendation for Xcel stock. The model indicates an estimated annualized return of 8.2%, which falls short of the required 10% equity hurdle rate. Future performance for Xcel Energy remains contingent on the successful execution of its infrastructure projects, securing necessary regulatory approvals, and maintaining disciplined cost management. Despite robust underlying growth catalysts, the valuation perspective suggests potential overvaluation based on projected returns.

Sources:TIKR.com