Utilities Slashed as Broadcom Climbs

Analysts cut target prices on a broad swath of US utilities this week. At least eight names took hits. Duke Energy, Entergy, FirstEnergy, Sempra, and Pinnacle West all saw consensus targets nudged lower.

The moves follow a run-up in utility stocks driven by AI power demand. Analysts appear to be taking some chips off the table after valuations stretched. Duke's average target now sits at $138.56. Entergy's target dropped to $121.95.

The standout on the other side was Broadcom. Consensus targets for the chipmaker rose to $517.61. That marks the latest upward revision for a stock that has nearly tripled in two years on AI infrastructure demand. Broadcom's market cap now exceeds $1.8 trillion.

Payroll processing giants also caught upgrades. ADP and Paychex both received higher targets. ADP's consensus sits at $246.80. Payroll firms have benefited from sticky employment data.

The most notable single-stock move came at Aptiv. The auto-parts group saw its consensus target trimmed to $77.84. That reflects ongoing concern about EV adoption slowdowns. Short interest in Aptiv stands at 6.1% of free float — a meaningful bearish position for a $14.5 billion company.