Analysts’ target price
According to Wall Street analysts’ consensus, Dominion Energy (D) has a mean target price of $82.2, which indicates the potential to gain nearly 8% in a year. Currently, it’s trading at $76.2.
Among the 16 analysts tracking Dominion Energy, 11 recommend the stock as a “hold,” while three recommend it as a “strong buy.” Two analysts rate it as a “buy,” while none of the analysts rate the stock as a “sell.”
Goldman Sachs raised Dominion Energy’s target price from $77.0 to $80 on January 11, 2018. Wells Fargo cut its target price from $88.0 to $80.0 last week.
Sempra Energy (SRE) has a mean target price of $121.9—compared to its current market price of $107.2. It shows an upside potential of 14% going forward.
As of January 12, 2018, among the nine analysts covering Sempra Energy, four recommend it as a “hold,” two recommend it as a “buy,” three recommend it as a “strong buy,” and no analysts recommend it as a “sell.”
Both of the utilities seem well placed for the future with their respective acquisition targets. Sempra Energy seems to have an edge over Dominion Energy from the price-return perspective given the upside potential by Wall Street analysts. Oncor’s significant presence in Texas might bring huge growth opportunities for Sempra Energy going forward.
At the same time, you can’t deny the possible regulatory hurdles that Dominion Energy could face related to SCANA’s nuclear project. It might influence Dominion Energy’s market performance in the short to medium term.
To learn how broader utilities (XLU) (IDU) are placed ahead, read An Investor’s Guide: A Look at the 10 Largest S&P 500 Utilities.