• Morgan Stanley maintains an "Underperform" rating but raises the price target from $79 to $84.
• QRG Capital Management Inc. reduces its holdings in Xcel Energy by 20.4%, while other hedge funds show varied interest.
• Short interest in Xcel Energy decreases by 22.1%, indicating a reduction in bearish sentiment among investors.

Xcel Energy Inc. (NASDAQ: XEL) is a major utility company in the United States, providing electricity and natural gas services to millions of customers. The company operates in several states, including Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. Xcel Energy faces competition from other utility providers but remains a significant player in the energy sector.

On January 21, 2026, Morgan Stanley maintained its "Underperform" rating for Xcel Energy, with the stock priced at approximately $76.40. Despite this, Morgan Stanley raised its price target from $79 to $84. This suggests a cautious outlook, yet acknowledges potential for some price appreciation. The current stock price of XEL is around $76.34, showing a slight increase of 0.18% or $0.13.

QRG Capital Management Inc. recently reduced its holdings in Xcel Energy by 20.4%, selling 8,516 shares. The remaining 33,266 shares are valued at approximately $2.68 million. Meanwhile, other hedge funds have shown varied interest. Twin Peaks Wealth Advisors LLC acquired a new position valued at $25,000, and ORG Partners LLC increased its stake by 168.4% during the third quarter.

Xcel Energy's short interest saw a notable reduction in December, decreasing by 22.1% to approximately 25.2 million shares. This represents about 4.3% of the company's shares being short sold. With an average daily trading volume of 6.8 million shares, the days-to-cover ratio is 3.7 days. This indicates a decrease in bearish sentiment among investors.

Analyst activity around Xcel Energy has been dynamic. Weiss Ratings upgraded the stock from a "hold (c+)" to a "buy (b-)" on October 24th. Mizuho set a price target of $86.00 on January 9th, and TD Cowen began coverage in a recent research note. These actions reflect a mix of cautious optimism and renewed interest in the company's potential.