In this series, we’re looking at Wall Street analysts’ favorite utilities (XLU) based on their “buy” ratings.
As of July 12, among the ten analysts covering Sempra Energy (SRE), four have recommended a “buy” for the stock, three have recommended a “strong buy,” three have recommended a “hold,” and none have recommended a “sell.”
Sempra Energy has a mean target price of $123.67, which compares to its current market price of $115.68. It shows an upside potential of 7% going forward.
Sempra looks strong
Sempra Energy is one of the fastest-growing utilities in the country with a major presence in California, the largest economy in the country. With the Oncor acquisition about to close, Sempra will also likely expand its footprint in Texas, the second-largest economy in the country. Sempra also has a notable presence in Mexico and South America. It expects to grow its adjusted EPS 13% annually through 2020.
Peer price targets
Edison International (EIX) stock has an estimated upside of 6% for the next 12 months, given analysts’ mean price target of $69.31. It’s currently trading at $65.68.
PG&E (PCG), California’s once-largest utility by market capitalization, offers a handsome upside potential of more than 11% going forward. It has a mean price target of $48.50 against its current market price of $43.65. Barclays recently initiated coverage on PCG with an “equal weight” rating. It has given it a price target of $53 as of July 10.