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UPDATE: ISI Group Downgrades Sempra Energy to Neutral on Lowered EPS Forecast


In a report published Monday, ISI Group analyst Greg Gordon downgraded the rating on Sempra Energy (NYSE: SRE) from Buy to Neutral, but reiterated the $83.50 price target.

In the report, Gordon noted, “We are lowering our EPS forecast for '14 & / '15 and see '16 EPS outlook down vs. prior guidance. On its Q4 call, SRE reiterated a long-term EPS growth aspiration of 6-8%. The growth rate is off 2013 guidance (midpoint of $4.55), after excluding $0.30-$0.40 of retroactive GRC revenues. This implies 2016 EPS guidance of $5.00 to $5.30, vs. SRE's prior 2016 outlook of $5.50 - $6.00. We are also lowering our '14 and '15 EPS forecast from $4.95 / $5.25 to $4.45 / $4.95. We estimate that between $40-50m of '12 net income ($0.18/share) related to renewable projects entering service and booking ITCs. No new US renewable projects are expected to come on-line until 2015. ‘13 EPS also includes +$0.50/ sh of non-recurring items (Mesquite gain on sale, GRC true-up) making EPS growth in 2014 challenging.”

Sempra Energy closed on Monday at $82.08.

Latest Ratings for SRE

Aug 2019MaintainsEqual-Weight
Aug 2019Initiates Coverage OnEqual-Weight
May 2019MaintainsEqual-Weight

View More Analyst Ratings for SRE
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Posted-In: ISI GroupAnalyst Color Downgrades Analyst Ratings


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