<div id="readability-page-1"><div>** Scotiabank raises price target on U.S. utilities as they provide a hedge against a potential downturn that other AI-focused sectors lack** &#34;We expect another year of solid returns in 2026, particularly for power stocks and U.S. utilities with meaningful data center exposure&#34; - brokerage** Brokerage adds that several companies have been guiding to accelerating earnings/share growth thanks to rapidly-rising capex forecasts, but the pace is slower than that of the S&amp;P 500, and utilities are not seeing positive estimate revisions like the market is<div><table><tbody><tr><td>Company</td><td>Old PT</td><td>New PT</td><td>% upside/downside to stock's last close</td></tr><tr><td>NextEra Energy </td><td>$99</td><td>$102</td><td>~25%</td></tr><tr><td>CenterPoint Energy </td><td>$45</td><td>$49</td><td>28.2%</td></tr><tr><td>FirstEnergy </td><td>$51</td><td>$55</td><td>23.3%</td></tr><tr><td>Eversource Energy </td><td>$63</td><td>$66</td><td>-3.5%</td></tr><tr><td>Duke Energy </td><td>$137</td><td>$146</td><td>25% </td></tr><tr><td>American Electric Power </td><td>$121</td><td>$131</td><td>13.1%</td></tr><tr><td>WEC Energy </td><td>$130</td><td>$140</td><td>33%</td></tr><tr><td>Alliant Energy </td><td>$67</td><td>$72</td><td>~10%</td></tr></tbody></table></div></div></div>

Scotiabank has raised price targets for U.S. utilities, viewing them as a hedge against potential downturns that AI-focused sectors may not withstand. The brokerage anticipates solid returns in 2026, especially for power stocks and utilities with data center exposure. Despite slower earnings growth compared to the S&P 500, utilities are not experiencing positive estimate revisions. Updated price targets include NextEra Energy at $102, CenterPoint Energy at $49, and others, with varying upsides.

Scotiabank sees US utilities as hedge, raises price targets