Sempra Energy price target lowered to $78 from $92 at BMO Capital

BMO Capital analyst James Thalacker lowered the firm’s price target on Sempra Energy (SRE) to $78 from $92 but keeps an Outperform rating on the shares after its Q4 earnings miss and guidance cut. The impact of regulatory lag, inflationary wildfire costs, the associated financing requirements, and a more challenging Final Decision in the company’s California GRC – General Rate Case -cumulatively resulted in the company significantly cutting its 2025 outlook and rebasing a higher overall 7%-9% long-term EPS CAGR growth rate expectation off its lower 2025 midpoint view, the analyst tells investors in a research note. BMO maintains however that Sempra’s high-quality infrastructure portfolio has core positions in the attractive So. Central/Southwest markets of North America.