Analysts’ target prices
Last week, UBS raised its target prices for many utility stocks. NextEra Energy (NEE) stock has an estimated upside of 0.8% based on its median target price of $183.1 and its current market price of $181.7. UBS increased NextEra Energy’s target price from $195.0 to $209.0 last week.
Dominion Energy (D) stock has a median target price of $74.8—compared to its current price of $74.5, which implies flattish movement over the next 12 months. UBS raised Dominion Energy’s target price from $75.0 to $84.0. UBS also upgraded Dominion Energy from “neutral” to “buy” last week.
American Electric Power (AEP) has a median target price of $77.7—compared to its current market price. The target price implies flattish movement for the next 12 months. UBS raised American Electric Power from $83.0 to $85.0 on November 29.
According to Wall Street analysts’ consensus, Xcel Energy (XEL) stock has a median target price of $50.9—compared to its current market price of $52.5, which indicates a downside of 3% in the next year. UBS increased Xcel Energy’s target price from $50.0 to $53.0 on November 29.
Many utility stocks seem to be offering minimal potential upside based on analysts’ target prices due to their recent strength. However, a dovish stance from the Fed regarding the interest rate hike and healthy quarterly earnings could be some of the important indicators boosting utility stocks going forward.
To learn about the top-yielding utility stocks (XLU), read Here Are the S&P 500 Utility Stocks with the Best Dividends.