Xcel Energy's price target raise

What happened: On May 4, Evercore ISI raised its price target for Xcel Energy (XEL) to $95, despite a mixed Q1 report, citing the company's exposure to the growing data center market. Xcel Energy, a major US electricity and natural gas company, is among the top picks for investing in this surge. Meanwhile, BMO Capital raised its price target for XEL to $94 on April 22, maintaining an Outperform rating ahead of Q1 results. Xcel Energy reported a rise in Q1 income to $556 million, or $0.89 per share, compared to $483 million, or $0.84 per share, last year.

Market impact: The positive analyst sentiment and strong earnings have driven an increase in Xcel Energy's stock price, benefiting investors. The utility sector, particularly companies with exposure to data centers, is likely to see increased interest. This narrative also positively impacts Bloom Energy (BE), which has seen a 240% increase in 2026, as it operates in the same growth space.

What to watch next: Xcel Energy's Q2 earnings, scheduled for late July, will provide further insight into the company's performance and the data center market's impact. Additionally, regulatory decisions regarding utility rates and infrastructure projects will influence Xcel Energy's stock price. For Bloom Energy, investors should monitor RBC's price target of $335, which suggests a 17.1% upside from current levels.