Critical Insights From Sempra Analyst Ratings: What You Need To Know
In the preceding three months, 5 analysts have released ratings for Sempra (NYSE:SRE), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 2 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $81.8, a high estimate of $86.00, and a low estimate of $76.00. Witnessing a positive shift, the current average has risen by 1.11% from the previous average price target of $80.90.
Diving into Analyst Ratings: An In-Depth Exploration
The standing of Sempra among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| James Thalacker | BMO Capital | Lowers | Outperform | $84.00 | $86.00 |
| David Arcaro | Morgan Stanley | Lowers | Equal-Weight | $76.00 | $79.00 |
| Paul Fremont | Ladenburg Thalmann | Lowers | Buy | $79.00 | $81.50 |
| Anthony Crowdell | Mizuho | Raises | Buy | $86.00 | $79.00 |
| Sarah Akers | Wells Fargo | Raises | Overweight | $84.00 | $79.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sempra. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Sempra compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Sempra's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Sempra analyst ratings.
Get to Know Sempra Better
Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.
Unraveling the Financial Story of Sempra
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Decline in Revenue: Over the 3 months period, Sempra faced challenges, resulting in a decline of approximately -44.51% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.
Net Margin: Sempra's net margin excels beyond industry benchmarks, reaching 22.01%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Sempra's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.86%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.91%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.12, Sempra adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings: What Every Investor Should Know
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.