Xcel Energy raised on Colorado rate case, Avangrid cut at Mizuho
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Xcel Energy (XEL
+1.4%) is upgraded to Buy from Neutral with a $72 price target, up from $64, at Mizuho following the settlement in its electric general rate case filing in Colorado, which the firm says is one of the company's more challenging regulatory jurisdictions.

The settlement covers all aspects of the proceeding save one relating to the recovery method of decommissioning and the early retirement of Craig Station Unit 2 and Hayden Units 1 and 2.
Mizuho says the settlement resolves most of Xcel's regulatory uncertainty with the exception of Minnesota, and provides earnings visibility for the next few years.
On the flip side, Avangrid (AGR
-3.1%) turns sharply lower after Mizuho cuts shares to Underperform from Neutral with a $47 target, trimmed from $48, anticipating weaker earnings growth in 2022-23 with no contribution expected from the proposed PNM merger, which remains subject to regulatory approval in New Mexico.
While assuming some contribution from PNM to 2024 earnings, Mizuho says its estimates fall short of the company's 6%-8% growth target.
Xcel's revenue and earnings have "healthily grown above even pre-COVID levels in the first three quarters of this year," Kody's Dividends writes in a bullish analysis posted on Seeking Alpha.