Stock Price & Analysis

Based on the provided data and current market status (closed), here's my analysis for SRE:

Technical Analysis

The stock is showing bearish momentum with a significant drop of -4.29% in the last trading session, closing at $82.80. The RSI at 44.47 indicates neutral territory but trending towards oversold conditions. The MACD at -1.31 suggests bearish momentum is currently dominating.

Recent Price Action The stock has experienced notable weakness, trading below its 20-day moving average of $84.66. The current price is testing key Fibonacci support levels, with S1 at $78.03 and S2 at $75.58.

Analyst Sentiment Recent analyst actions show positive sentiment despite current price weakness:

• Morgan Stanley upgraded from Hold to Buy with PT $98 (Dec 13, 2024)
• Barclays maintains Buy rating with PT $99 (Dec 2, 2024)
• Jefferies initiated coverage with Strong Buy rating and $98 PT (Oct 24, 2024)

Catalysts & News A significant development affecting SRE is Trump's executive order lifting the freeze on LNG export permit applications. This directly impacts Sempra's Port Arthur LNG project's second phase, which awaits approval, potentially providing a positive catalyst for the stock.

Earnings Outlook The company is expected to report Q4 earnings on February 25, 2025, with analysts forecasting EPS of $1.54, representing a 36.3% increase year-over-year.

Based on the technical weakness but strong fundamental outlook and positive regulatory developments, selling SRE at current levels would not be advisable as the stock appears oversold and has significant upside potential according to analyst consensus targets.

Based on the provided data and market context, here's the price prediction analysis for SRE stock in 2025:

Technical Analysis

Current Market Position SRE is currently trading at $82.80, showing a significant decline of -4.29% in the latest trading session. The stock has been in a downward trend since early December 2024, falling from around $94 to current levels.

Price Target Analysis Based on technical indicators and recent market movements, here are the projected price levels for SRE in 2025:

The stock is expected to reach $95.47 by end of 2025, representing a 12.1% upside from current levels. This projection is supported by analysts' consensus and fundamental factors including:

1. Expected earnings growth with adjusted EPS forecast of $5.15 for fiscal 2025, showing an 8% year-over-year increase

2. Strong business fundamentals with expansion in LNG projects, particularly the Port Arthur LNG project awaiting approval

Key Drivers The main catalysts supporting this price target include:

1. Trump's executive order resuming LNG export permit processing, which directly benefits SRE's Port Arthur LNG project

2. Strong analyst consensus with 13 "Strong Buy," 2 "Moderate Buy," and 3 "Hold" ratings

3. Expected improvement in utility sector performance as interest rate cuts begin in 2025

The S1 support level for SRE Stock is $77.98 ,The R1 resistant level for SRE Stock is $85.93.

As of the end of day on 2025-01-24, the price of SRE Stock was $83.

The target price for SRE Stock according to analyst rating is 95.63, with the highest price target at 99.00 and the lowest at 88.00. Analysts have a Strong Buy rating on SRE Stock overall.

The market cap of SRE is $52.4B.

Based on the provided data and current market conditions, here's my analysis of whether SRE is overvalued:

Valuation Analysis SRE currently trades at concerning valuation metrics that have steadily increased throughout 2024:

• P/E ratio expanded from 15.9x to 18.4x in Q3 2024
• EV/EBITDA rose from 15.7x to 18.8x
• Price-to-Sales grew from 3.3x to 4.1x
• Price-to-Book increased from 1.6x to 1.8x

Recent Price Performance The stock has shown significant weakness, dropping 4.29% in the last trading session to $82.80, with heavy volume of 4.4 million shares traded.

Analyst Sentiment Recent analyst actions suggest mixed views:

• Morgan Stanley upgraded to Buy with $98 target
• Barclays maintains Buy rating with $99 target
• Evercore ISI maintains Buy but with lower $88 target

Key Catalysts The company faces headwinds from:

• Potential liability concerns over Southern California wildfires
• Uncertainty around LNG export project approvals amid policy changes

Conclusion SRE appears overvalued at current levels given the expanding multiples, recent price weakness, and mixed catalysts ahead.

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. The Company's 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 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.

Based on the current market data and analyst projections, Sempra (SRE) stock is expected to reach $115-120 by 2030, driven by its strong position in energy infrastructure and projected 6-8% long-term EPS growth. The company's strategic focus on sustainable energy solutions and critical infrastructure development supports this growth trajectory. The expansion in clean energy technologies and reliable energy systems across North America positions SRE well for sustained growth over the next five years.

SRE has a total of 16835 employees.