BMO Capital raised the firm’s price target on Sempra Energy (SRE) to $95 from $88 and keeps an Outperform rating on the shares. The 45% stake sale of SIP to KKR, above guidance of 15%-30%, will enable the company to deconsolidate the segment and account for their remaining investment under the equity method, and as a result, credit agencies could reduce their current downgrade thresholds as Sempra moves towards the pro forma target, the analyst tells investors in a research note.
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