Sempra Energy Benefits from LNG Growth and Significant Investments
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Sempra Energy's Investments: Sempra Energy is investing $13 billion by 2025 to enhance its infrastructure and meet rising electricity demand, particularly driven by AI data centers, with a projected 30% increase in capital investments from 2026 to 2029.
Renewable Energy Growth: The company is expanding its renewable energy portfolio, with 1,044 MW of contracted capacity from wind and solar facilities and significant rooftop solar capacity in its service area.
Risks from Wildfires and Partnerships: Sempra faces risks from California's severe wildfires that could disrupt power supply and damage infrastructure, as well as potential challenges in its dealings with Mexico's state-owned enterprises, PEMEX and CFE.
Stock Performance and Comparisons: Sempra Energy shares have increased by 20.4% in the past six months, outperforming the industry, while other companies in the sector, like Spire Inc. and Atmos Energy Corp., are also showing strong growth potential.
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Analyst Views on SRE
Wall Street analysts forecast SRE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SRE is 100.58 USD with a low forecast of 89.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 86.780
Low
89.00
Averages
100.58
High
115.00
Current: 86.780
Low
89.00
Averages
100.58
High
115.00
About SRE
Sempra is a North American energy infrastructure company. The Company's businesses invest in, develop and operate energy infrastructure, and provide electric and gas services to customers. Its segments include Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides natural gas and electric service to Southern California and part of central California through its subsidiaries, SDG&E and SoCalGas. The Sempra Texas Utilities segment holds its investment in Oncor Holdings, which owns an over 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas, and its indirect 50% interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission utility serving customers near the Texas-Mexico border. The Sempra Infrastructure segment develops, builds, operates and invests in energy infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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