Buy Rating Affirmed for Sempra Energy Despite EPS Guidance Cut, Long-Term Growth Outlook Positive

Bank of America Securities analyst Ross Fowler has reiterated their bullish stance on SRE stock, giving a Buy rating yesterday.

Ross Fowler has given his Buy rating due to a combination of factors that suggest potential for Sempra Energy’s stock despite recent challenges. The company has adjusted its 2025 earnings guidance downward by 11%, reflecting a new midpoint of $4.50 for its EPS. However, the long-term EPS growth rate has been revised upward to a range of 7%-9%, indicating a positive outlook beyond the immediate term.
Despite the stock experiencing a significant sell-off, dropping 24% intraday, Fowler believes this reaction is not warranted solely based on the EPS guidance revision. The company’s history of conservative guidance and its ability to exceed expectations over the past decade support the Buy rating. Additionally, the current stock price of $87.18 is below the price objective of $94.00, suggesting potential upside for investors.

In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $96.00 price target.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SRE in relation to earlier this year.