Utilities: Price Targets and Analysts’ Views
Analyst price targets
So far this year, utilities (XLU) have gained nearly 10%, while broader markets have risen more than 12%. Let’s look at where analysts think utilities are headed.
The biggest utility by market capitalization, NextEra Energy (NEE), has an estimated upside of 6%. Analysts’ mean price target for NEE is $155.57, whereas its current market price is $146.74. It has surged more than 23% year-to-date, significantly outperforming peers.
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The chart above shows analysts’ views on the top four S&P 500 utilities (XLU). Georgia-based Southern (SO) has a mean price target of $51.38, implying a possible gain of nearly 5%. It is currently trading at $49.14.
The largest regulated utility in the country, Duke Energy (DUK), has a mean price target of $85.93, suggesting a potential gain of just 2% against its current market price of $84.36. Dominion Energy (D) has an estimated upside potential of approximately 5%. Analysts have given it a mean price target of $80.33, whereas its current market price is $76.74.
For more about SPX utilities with handsome upside potentials, read These SPX Utilities Could Gain You More than 10% from Here, and for a comparative analysis, see Which Utility Stock Is Best among the Top-Yielding SPX Utilities?