Analyst James Thalacker from BMO Capital maintained a Buy rating on Sempra Energy (SRE – Research Report) and increased the price target to $81.00 from $78.00.
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James Thalacker has given his Buy rating due to a combination of factors including Sempra Energy’s strong financial performance and strategic initiatives. The company’s first-quarter earnings per share of $1.44 exceeded expectations, and their reaffirmed guidance for 2025 and 2026 suggests continued growth. Sempra Energy projects a 7-9% compound annual growth rate in EPS from 2025 to 2029, with management optimistic about achieving the higher end of this range.
Additionally, the company’s capital recycling plans, including the sale of Ecogas and a minority interest in Sempra Infrastructure, are expected to generate significant proceeds. This, combined with potential upside from $12 billion in additional capital expenditures at Oncor, positions Sempra Energy well for future growth. The company’s robust infrastructure portfolio and strong presence in key North American markets further support the positive outlook, with expectations of enhanced earnings and rate base growth.
In another report released on May 9, Mizuho Securities also maintained a Buy rating on the stock with a $82.00 price target.