BMO Capital analyst James Thalacker has maintained their bullish stance on SRE stock, giving a Buy rating on February 26.
James Thalacker has given his Buy rating due to a combination of factors that highlight Sempra Energy’s potential for growth despite recent challenges. The company’s decision to lower its 2025 guidance was unexpected, but it sets a new foundation for a sustainable long-term growth rate of 7-9%. This adjustment reflects a strategic repositioning, particularly in its California and Texas operations, aiming to enhance regulatory strategies and improve operating cash flow.
Despite the initial negative reaction from investors, Thalacker sees the potential for Sempra to achieve a higher sustained growth outlook. The company’s high-quality infrastructure in key North American markets and robust cash flow from LNG development are expected to drive approximately 7% EPS growth. Additionally, successful navigation of regulatory processes in California could lead to further multiple expansion, supporting the Buy rating.
In another report released on February 26, Mizuho Securities also maintained a Buy rating on the stock with a $76.00 price target.
SRE’s price has also changed moderately for the past six months – from $82.630 to $71.440, which is a -13.54% drop .