Sempra’s price targets

According to Wall Street analysts, Sempra Energy (SRE) has a higher upside than its peer utilities, with an estimated upside of 9% and a price target of $120. On August 4, 2016, SRE was trading at $110.30.

Of the 17 analysts tracking Sempra, none have “sell” recommendations on the stock. Ten analysts have issued “buy” ratings for Sempra, and seven have recommended “hold” ratings on the stock.

Why Brokers Are Positive on Sempra Energy after Its 2Q Earnings

As for Sempra’s peers, analysts expect upsides in the range of 6%–8% over the next year. Edison International (EIX) has a one-year price target of $80, which implies a possible upside of 5%. EIX was trading at $76.23 on August 4, 2016.

Pacific Gas & Electric (PCG) has a one-year price target of $67.89, which implies an estimated upside of 5%. It’s trading at $64.51.

Sempra Energy: Outlook

Sempra Energy’s management has provided earnings guidance range of $4.60–$5.00 per share for 2016. The downward guidance compared to 2015 offered by its management shows that the slowing demand for energy could continue to dent its earnings in 2016.

Sempra Energy is one of the most diversified US utilities. Its operations are spread beyond California over Latin America and Mexico. Its business mix of electric, gas, and midstream bodes well for its long-term growth.

Sempra’s earnings growth is expected to accelerate once its Cameron LNG export facility comes operational in 2019. Its long-term earnings growth of 12% is nearly double than the industry average.

Latest articles

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”

AMD stock hit a new 13-year high after the EPYC Rome server CPU launched. How can AMD outperform Intel CPUs at such low prices and still profit?

VMware (VMW) lost about 9% in early hours trading today. VMW released its Q2 of fiscal 2020 results on August 22 after the market closed.

Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?