Goldman Sachs Boosts Sempra’s Stock with 10% EPS Growth Forecast and $106 Target
Goldman Sachs has upgraded its outlook for Sempra (SRE), predicting a 10%+ increase in consolidated EPS, up from ~9.5%. The company's stock price has risen following this upgrade, with a new price target set at $106. Sempra's focus on Texas and improved management communication have contributed to this positive revision.
Sempra is increasing its capital expenditure in Texas, particularly in transmission. This focus is expected to boost Oncor's EPS growth to ~21% in 2025-29, up from 15% previously. Oncor's capital investments are predicted to surge by at least 30%, with potential for further upside. The increased data center load growth and higher business, infrastructure, and population growth in Texas are driving this growth.
Sempra's legislative wins, including the approval of the unified tracker mechanism in Texas and wildfire risk mitigation in California, have also contributed to its positive outlook. The company has made progress on its balance sheet through announced asset sales. Goldman Sachs analyst Carly Davenport praised Sempra's improved management communication and execution.
Goldman Sachs has upgraded Sempra (SRE) to 'Buy' from 'Neutral', reflecting the company's improved prospects. Sempra's increased focus on Texas, legislative wins, and balance sheet progress have all contributed to this upgrade. With a new price target set at $106, investors are showing confidence in Sempra's future growth.
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