In a report released yesterday, Sarah Akers from Wells Fargo maintained a Buy rating on Sempra Energy (SRE – Research Report), with a price target of $96.00.
Sarah Akers’s rating is based on the belief that the market’s reaction to Sempra Energy’s recent guidance cut is excessive. Despite the company’s announcement of an 11% reduction in its 2025 earnings per share (EPS) guidance, which led to a significant drop in share price, Akers suggests that the decline is disproportionate to the actual decrease in earnings potential.
Additionally, while the guidance cut and the resulting underperformance compared to peers have raised concerns, Akers seems to imply that the company’s long-term growth prospects remain intact. The analyst acknowledges the surprise in the broad-based cuts but maintains a positive outlook, potentially seeing the current dip as a buying opportunity given the company’s historical execution track record and future growth targets.
In another report released on February 20, Morgan Stanley also maintained a Buy rating on the stock with a $100.00 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.