Bank of America Securities analyst Ross Fowler has maintained their bullish stance on SRE stock, giving a Buy rating on March 26.
Ross Fowler’s rating is based on Sempra Energy’s strategic decision to divest a portion of its stake in Sempra Infrastructure Partners (SIP) and the planned sale of its EcoGas business in Mexico. These moves are aligned with Sempra’s broader objective to reallocate capital towards expanding its regulated U.S. utility operations, which is viewed positively in terms of strategic direction.
The sale process is expected to transition Sempra towards a more focused utility growth model, reducing its non-regulated earnings contributions and potentially enhancing its valuation. The involvement of partners like KKR and ADIA in the sale process, along with the strategic value of EcoGas, further supports the potential for value creation. Despite some challenges like lower EBITDA in 2024 and increased interest rates, the progress in LNG export marketing efforts is anticipated to bolster the company’s value, justifying the Buy rating.
According to TipRanks, Fowler is a 3-star analyst with an average return of 2.8% and a 58.02% success rate. Fowler covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, American Electric Power, and Consolidated Edison.
In another report released on March 26, Wells Fargo also maintained a Buy rating on the stock with a $85.00 price target.