Goldman Has Buy On Sempra Energy (SRE)

Goldman Sachs has a Buy rating and a $55 price target on shares of Sempra Energy SRE. In the research report sent to clients, Goldman writes, "After close on Wednesday, Sempra Energy (SRE, Buy) announced that it will increase its ownership stake in two South American utilities, acquiring positions held by privately owned AEI. SRE will pay approximately $875m to raise its ownership in a Chilean regulated electric distribution utility (Chilquinta Energía) from 50% to 100% and increase its stake in a Peruvian electric distribution utility (Luz del Sur) from 38% to 76%. SRE expects (1) the transaction to close in 2Q2011; (2) to prove accretive – and raised the low end of its 2011 guidance range by $0.10 to $4.00-$4.30 vs. GS/consensus of $4.20/ $4.15. The transaction is subject to shareholder and regulatory approvals." Shares of SRE lost 14 cents yesterday to close at $51.94.