Sempra (SRE) is a leading energy infrastructure company based in San Diego, specializing in regulated utilities, LNG development, and renewable energy. With a market cap of $51.9 billion, it operates major utilities like SoCalGas and SDG&E, while its infrastructure business supports global energy needs through LNG facilities and pipelines. Sempra’s international operations in Mexico diversify its revenue, and its focus on sustainability includes investments in grid modernization and renewable energy.
Shares of the leading utility company have underperformed the broader market over the past 52 weeks. SRE has surged 17% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.6%. In 2025, shares of SRE are down 6.5%, compared to SPX’s 2.5% gain on a YTD basis.
However, SRE's performance has also lagged behind the Utilities Select Sector SPDR Fund (XLU), which has returned 29.2% over the past 52 weeks and 3.2% in 2025.
On Nov. 6, Sempra's shares rose 7.3% after releasing Q3 results. Although the company posted adjusted earnings of $0.89 per diluted share, missing Wall Street estimates, it reaffirmed confidence in its outlook. Sempra updated its 2024 adjusted EPS guidance to a range of $4.60 to $4.90 and maintained its 2025 guidance at $4.90 to $5.25 per share.
For FY2024, that ended in December, analysts expect SRE’s EPS to grow 3.3% year-over-year to $4.76. The company’s earnings surprise history is grim. It met the consensus estimates in only one of the last four quarters while missing on three other occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
This configuration has been fairly consistent over the past months.
On Jan. 27, Barclays PLC (BCS) reduced Sempra’s price target from $99 to $95 while maintaining an “Overweight” rating. The firm remains optimistic about the utility sector, expecting Q4 results to reflect continued demand growth, with rate base and earnings growth accelerating toward 9%. The analyst also noted that valuations in the sector remain attractive.
The mean price target of $95.33 represents a 16.3% premium to SRE’s current price levels. The Street-high price target of $99 suggests an upside potential of 20.8%.
