Analyst Expectations For Sempra's Future

14 analysts have shared their evaluations of Sempra SRE during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $80.57, along with a high estimate of $95.00 and a low estimate of $70.00. A decline of 13.37% from the prior average price target is evident in the current average.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Sempra's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |---------------------|--------------------|---------------|---------------|--------------------|--------------------| |Julien Dumoulin-Smith|Jefferies |Lowers |Hold | $75.00|$77.00 | |Ryan Levine |Citigroup |Lowers |Neutral | $70.00|$93.00 | |Sarah Akers |Wells Fargo |Lowers |Overweight | $85.00|$88.00 | |David Arcaro |Morgan Stanley |Raises |Overweight | $86.00|$85.00 | |James Thalacker |BMO Capital |Lowers |Outperform | $78.00|$92.00 | |Julien Dumoulin-Smith|Jefferies |Lowers |Hold | $77.00|$96.00 | |Nicholas Campanella |Barclays |Lowers |Equal-Weight | $72.00|$95.00 | |Carly Davenport |Goldman Sachs |Lowers |Neutral | $76.00|$99.00 | |Anthony Crowdell |Mizuho |Lowers |Outperform | $76.00|$92.00 | |Shahriar Pourreza |Guggenheim |Lowers |Buy | $87.00|$95.00 | |David Arcaro |Morgan Stanley |Lowers |Overweight | $85.00|$100.00 | |Daniel Ford |UBS |Lowers |Neutral | $78.00|$95.00 | |Sarah Akers |Wells Fargo |Lowers |Overweight | $88.00|$96.00 | |Eric Beaumont |Barclays |Lowers |Overweight | $95.00|$99.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Sempra. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Sempra compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Sempra's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Sempra's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Sempra analyst ratings.

Discovering Sempra: A Closer Look

Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.

Key Indicators: Sempra's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3M period, Sempra showcased positive performance, achieving a revenue growth rate of 7.65% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Net Margin: Sempra's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.7% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sempra's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.25%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.7%, the company showcases effective utilization of assets.

Debt Management: Sempra's debt-to-equity ratio is below the industry average at 1.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.