UPDATE: Goldman Sachs Raises PT to $72 on Sempra Energy on Cost of Capital Update

Goldman Sachs reiterated its Neutral rating on Sempra Energy

but raised its price target from $71 to $72. Goldman Sachs commented, "We raise estimates to reflect a higher equity layer and return at SDG&E. Our new forecasts assume the recently granted 50.5%/10.2% equity layer/authorized ROE at SDG&E versus our previous assumption of 49.0%/10.1%. We now build in a 50.5%/10.3% equity layer/authorized ROE at SoCalGas versus our previous assumption of 52%/10.1%. SRE remains one of the more diverse, well-managed companies in our universe, with significant alternatives available to create shareholder value." Sempra Energy closed at $68.66 on Monday.