Analysts trimmed price targets across eight major US utility names this week. Duke Energy, Entergy, FirstEnergy, and Sempra all saw consensus targets nudge lower. American Electric Power and Pinnacle West Capital joined the list too. The moves reflect rising rate concerns hitting regulated utility valuations.
The pattern is clear: Wall Street is rotating away from rate-sensitive defensives.
Running counter to that trend, payroll giants got a boost. Automatic Data Processing saw its average consensus target rise to $246.80. Paychex climbed to $102.07. Both firms benefit from higher interest income on client float — a tailwind that utilities don't share.
The biggest target lift went to Broadcom. Its average analyst price target jumped to $517.61. The $1.8 trillion chipmaker carries short interest of just 1.1% of free float. Bears have little presence in the stock. Analyst enthusiasm for AI infrastructure spending underpins the bullish calls.
Consolidated Edison and WEC Energy Group also saw targets trimmed. The broad utility weakness suggests analysts are repricing the sector for a higher-for-longer rate environment.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
