UPDATE: Goldman Sachs Raises PT to $72 on Sempra Energy on Cost of Capital Update
Goldman Sachs reiterated its Neutral rating on Sempra Energy (NYSE: SRE) and 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.
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