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On Monday, BMO Capital Markets sustained their positive outlook on Sempra Energy (NYSE:SRE) shares, reaffirming an Outperform rating with a steady price target of $92.00. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $85 to $99, with three analysts recently revising earnings estimates upward. The firm’s analyst highlighted a series of anticipated updates that could influence the company’s performance, including a significant increase in capital expenditure for Oncor, which is expected to rise by 40-50%.
Sempra Energy’s recent announcements have been keenly observed, with the expectation of a comprehensive update following their fourth-quarter and full-year 2024 results, scheduled for March 4th according to InvestingPro data. The company, currently trading above its Fair Value, has maintained strong dividend payments for 27 consecutive years, with a current yield of 3.03%. Key points of interest for investors include the company’s five-year capital and financing strategies, which are set to include a $3 billion at-the-market (ATM) offering program.
The company has also confirmed its commitment to a 6-8% long-term growth rate, now based on the 2025 midpoint projections. With a current P/E ratio of 17.95 and a market capitalization of $52.3 billion, Sempra Energy is set to introduce its earnings per share (EPS) guidance range for 2026. InvestingPro subscribers can access detailed financial health scores and 12+ additional ProTips that provide crucial insights into the company’s performance metrics and growth potential.
Investors are also awaiting further insights into the development progress at Sempra Infrastructure Partners (SIP), potential additional monetization opportunities, and commentary on the 2023 General Rate Case (GRC) order. There is also interest in the upcoming cost of capital filing, as well as the stability of the California wildfire fund and the legislative and regulatory support for its replenishment.
The analyst expressed confidence in the company’s trajectory, stating, "We are also looking for development updates at SIP, additional monetization potential, commentary on the 2023 GRC order/ upcoming cost of capital filing, and the integrity of the CA wildfire fund and legislative/regulatory replenishment support. Reiterate our Outperform rating. Our target price is unchanged at $92." These factors collectively contribute to BMO Capital’s continued endorsement of Sempra Energy’s stock at an Outperform rating.
In other recent news, Sempra has seen significant developments in its board and financial outlook. The company expanded its board of directors with the addition of Anya Weaving and Kevin C. Sagara, effective March 1, 2025. Weaving’s experience in investment banking and Sagara’s extensive tenure in the energy sector are expected to bring fresh perspectives to the board’s oversight of corporate strategy and risk management.
Sempra’s subsidiaries, San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), recently secured rate increases approved by the California Public Utilities Commission (CPUC). For SDG&E, the approved revenue requirement for 2024 is $2.699 billion, a 7.5% increase from the previous year. SoCalGas has been granted a revenue requirement of $3.806 billion for 2024, a 9.3% increase from 2023.
In contrast, Jefferies analyst Julian Dumoulin-Smith adjusted the price target for Sempra Energy shares, reducing it to $96 from the previous $102, while maintaining a Buy rating. The anticipation for Oncor’s capital plan update and the increasing significance of liquefied natural gas (LNG) prospects were cited as influencing factors. Despite potential near-term risks for the 2025 earnings per share, Jefferies reiterated a Buy rating on Sempra Energy stock, indicating confidence in the company’s overall trajectory.
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