Sempra Energy downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Sempra Energy (SRE) to Neutral from Buy with a price target of $76, down from $99, implying a total return of 11%, following the Q4 results. The firm moved its estimates lower to reflect Sempra’s updated earnings guidance and commentary around costs and regulatory filings. The announcement to reset 2025 earnings lower surprised significantly to the downside and it will take time to rebuild confidence in the company’s ability to communicate and execute its strategy effectively, the analyst tells investors in a research note. Goldman sees limited near term catalysts to meaningfully move Sempra’s estimates higher.