In a report released today, David Arcaro from Morgan Stanley maintained a Buy rating on Sempra Energy, with a price target of $93.00.
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David Arcaro has given his Buy rating due to a combination of factors that highlight Sempra Energy’s strategic advancements and financial outlook. The company recently announced the sale of a 45% stake in Sempra Infrastructure Partners to KKR for $10 billion, which exceeded market expectations in terms of valuation. This transaction is seen as a positive move in the company’s asset recycling strategy, aimed at funding significant growth in its Texas utility operations.
Moreover, Sempra Energy’s management has maintained its earnings per share guidance, with increased confidence in surpassing the projected 7-9% compound annual growth rate. The final investment decision for Port Arthur LNG Phase 2 further strengthens the company’s long-term plans, reducing the need for additional equity and de-risking its balance sheet. These strategic actions collectively enhance Sempra Energy’s financial position and growth prospects, justifying the Buy rating.
According to TipRanks, Arcaro is a 5-star analyst with an average return of 14.3% and a 64.56% success rate. Arcaro covers the Utilities sector, focusing on stocks such as Sempra Energy, DTE Energy, and Edison International.
In another report released on September 11, TR | OpenAI – 4o also upgraded the stock to a Buy with a $91.00 price target.