Analyst James Thalacker of BMO Capital maintained a Buy rating on Sempra Energy, retaining the price target of $88.00.
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James Thalacker has given his Buy rating due to a combination of factors that highlight Sempra Energy’s strategic initiatives and growth potential. The company is actively engaged in the SIP sale process, which is expected to be both EPS and credit accretive, providing financial flexibility to support Oncor’s increasing capital expenditure opportunities. The anticipated sale could exceed the initial target range, aligning Sempra’s business profile more closely with a typical utility earnings structure.
Additionally, Oncor is positioned as the primary growth driver, with a significant increase in its rate base expected by 2029. The introduction of the Universal Tracker Mechanism is already offering interim earnings support, and potential regulatory developments could further enhance Oncor’s capital allocation. Furthermore, Sempra’s infrastructure portfolio in key North American markets is poised for robust EPS growth, supported by strong cash flow from LNG developments and potential regulatory advancements in California. These elements collectively underpin Thalacker’s positive outlook on Sempra Energy’s stock.
In another report released on August 30, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $90.00 price target.