Sempra Is 'Well-Positioned To Capture Secular Growth,' Says Bullish Analyst

Sempra SRE has been on the radar of investors during a period of macro uncertainty, being a high dividend yield stock.

The San Diego-based company has above-average earnings growth, a solid balance sheet and is led by a team with a history of execution, according to BMO Capital Markets.

The Sempra Analyst: James Thalacker upgraded the rating for Sempra from Market Perform to Outperform, while raising the price target from $76 to $84.

The Sempra Thesis: The company has catalysts that could drive outperformance through 2024, Thalacker said in the upgrade note.

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“Through 2026, Sempra’s earnings growth is expected to be largely driven by its regulated utility investment program,” the analyst wrote. He added that an acceleration in the company’s regulated growth profile can be expected “with its revised 5-year investment plan likely approaching the upper end of its $44-48bn initial outlook (+10-20%).”

“In November the company secured its equity funding needs for its upcoming capital program (2024-2028) with a well subscribed $1.4bn equity offering (priced down only 2%),” Thalacker further stated.

SRE Price Action: Shares of Sempra were trading at $76.22 at the time of publication Thursday.

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