UPDATE: Citigroup Raises PT to $65 on Sempra Energy

Citigroup increases its price target $5 to $65 on Buy-rated Sempra Energy

as it believes valuation is below fair levels. Citigroup says, "SRE has a suite of utility and infrastructure assets that should command anywhere from 14.0x to 18.0x price to earnings multiple. However, the stock continues to trade at a 13% discount to its blended fair value multiple and a 17% discount to a peer group of convergence utilities. We believe the historical level of earnings volatility continues to weigh on the stock, albeit, the discount has narrowed by 50% over the last 8 months. We believe sufficient momentum and earnings visibility now exists for SRE to achieve a full industry multiple." SRE closed at $58.62 a share on Tuesday.