Sempra Energy (SRE) became the largest utility by market capitalization in California after PG&E’s (PCG) wildfire fiasco. Among the nine analysts currently tracking Sempra Energy, three rate the stock as a “strong buy” while three rate it as a “buy.” Three analysts recommend it as a “hold,” and none of the analysts rate it as a “sell” as of March 7.
According to Wall Street analyst consensus, Sempra Energy stock has a mean price target of $118.6 against its current market price of $109.4, which indicates a possible gain of 8.4% going forward.
The chart above shows how analysts’ views on Sempra Energy have changed in the last few months.
Peer price targets
The California-based Edison International’s (EIX) stock has a mean price target of $68.33, which implies an estimated gain of 14% in a year. It’s currently trading at $60.1.
PG&E Corporation’s (PCG) stock has a gain potential of more than 15% in a year from its current market price of $42.4. Wall Street analysts have given it a mean price target of $48.9.
California wildfires significantly shook both PCG and EIX in 4Q17 after speculation that they caused the fires. In the last year, PG&E stock has fallen more than 35% while Edison International stock has fallen nearly 25%. Sempra Energy is currently trading close to where it was a year ago.
Next in this series, let’s take a look at how Sempra Energy is currently valued.