BMO changes PT on US utilities; says sector attractive but not expected to outperform

CenterPoint Energy

13/01/2026 14:03

** Brokerage BMO Capital changes PT on several U.S.-based utilities; expects sector to remain attractive but not outperform the broader market in 2026

** Sees sector struggling without defensive demand, citing cyclical preference, modest EPS growth, regulatory risk and volatility

** Expects fundamentals to improve with better returns, low valuations and AI-driven demand

** "Similar to our 2025 outlook, we believe 2026 will once again be a stock picker’s market. However, this year, investors should maintain a more balanced and diversified set of exposures” - BMO Capital

** Raises rating for Alliant Energy Corp LNT.O to "outperform" from "market perform"; cites strong fundamentals, potential for multiple expansion in defensive markets and growth upside from AI-driven demand

** Raises rating for CenterPoint Energy CNP.N to "outperform" from "market perform"; cites strong growth visibility and execution certainty despite current premium

Brokerage changes PT on following companies:

Company
New PT
Old PT
Upside/Downside to stock's last close
Xcel Energy XEL.O
$86
$91
16.21% upside
WEC Energy WEC.N
$116
$119
10.47% upside
Southern Co SO.N
$95
$109
9.52% upside
Sempra SRE.N
$103
$99
15.6% upside
Duke Energy DUK.N
$130
$136
11.38% upside
Alliant Energy LNT.O
$71
$70
8.94% upside

(Reporting by Varun Sahay in Bengaluru)

((Varun.sahay@thomsonreuters.com))