Sempra Energy PT Raised to $101 by Morgan Stanley, J.P. Morgan $98 Target
Morgan Stanley raised Sempra Energy’s price target to $101 from $97 while maintaining an Overweight rating and boosting estimates for its North American Regulated, Diversified Utilities and independent power producer segments. J.P. Morgan initiated coverage with an Overweight rating and a $98 target, citing leveraged exposure to record Texas infrastructure demand.
1. Morgan Stanley Price Target Increase
On February 20, Morgan Stanley lifted its price target for Sempra Energy to $101 from $97 and reaffirmed an Overweight rating. The firm upgraded its price estimates for North American Regulated Utilities, Diversified Utilities and independent power producers after noting utility underperformance versus the S&P in January and discussed Q4 earnings drivers such as data center pipeline affordability and political considerations.
2. J.P. Morgan Initiates Coverage
On February 6, J.P. Morgan analyst Aidan Kelly began coverage of Sempra Energy with an Overweight rating, raising his target to $98 from $85. The analyst highlighted significant leverage to robust Texas infrastructure demand following a prior period of restrained investment.
3. Company Operations Overview
Sempra Energy is an energy-service holding company developing and operating energy infrastructure while providing electric and gas services. It operates through four segments: Sempra California, Sempra Texas Utilities, Sempra Infrastructure and All Other, spanning regulated utilities and infrastructure projects.