Jefferies analyst Julien Dumoulin-Smith has revised the price target for Sempra Energy (SRE, Financial), lowering it from $77 to $75, while maintaining a Hold rating on the stock. This adjustment follows Sempra's confirmation of plans to divest another minority stake in Sempra Infrastructure Partners (SIP) by the end of March. Dumoulin-Smith points out that while this asset sale is expected to bolster credit support for Sempra, it is not anticipated to enhance earnings under current assumptions.
The central factor influencing the reduced valuation is the decreased multiples for the SIP assets, according to the analyst. Despite the sale's potential to improve Sempra's credit position, it does not appear to be accretive in terms of boosting earnings, driving the downward revision in the price target.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Sempra (SRE, Financial) is $80.24 with a high estimate of $87.00 and a low estimate of $70.00. The average target implies an upside of 15.07% from the current price of $69.73. More detailed estimate data can be found on the Sempra (SRE) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Sempra's (SRE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sempra (SRE, Financial) in one year is $83.85, suggesting a upside of 20.25% from the current price of $69.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sempra (SRE) Summary page.
