Analysts have given Sempra Energy (SRE) stock a median target price of $128.40 compared to its current market price of $124.45, indicating a potential upside of 3.2% for the next 12 months.
Among the 12 analysts that cover Sempra Energy, four have given it “buys,” five have given it “strong buys,” and three have given it “holds.” No analysts have recommended “sells” on the stock as of March 15. Morgan Stanley raised SRE’s target from $129.0 to $132.0 recently.
Sempra Energy, the largest utility by market cap in California, is currently trading at a forward PE multiple of 20x based on earnings estimates. Utilities (XLU) at large are trading at an average forward PE ratio of 18x. Sempra Energy’s five-year average historical valuation is close to ~21x. Thus, Sempra stock looks to be trading at a largely discounted valuation to its historical average.
Peer Edison International (EIX) is trading at a forward PE ratio of over 14x. Its five-year historical average valuation is over ~19x. Thus, EIX appears to be trading at a large discount to its historical average and its peers.
Sempra Energy is trading at a yield of 3.1%, while Edison International offers a dividend yield of 3.8%.
Edison International stock has an upside potential of more than 6% for the next 12 months and a target price of $68.07. Currently, Edison International is trading at $64.05.