Sempra Energy (SRE) Stock Forecast & Price Target

Sempra's robust capital plan of $36.1 billion for 2025-2029, reflecting a 34% increase from previous projections, illustrates the company's commitment to enhancing its infrastructure and earnings potential, particularly within the Texas market. The net income increase of $203 million from Sempra California, driven by tax benefits and improved regulatory margins, indicates strong financial performance and operational efficiency. Additionally, the expectation of more frequent rate case filings positions the company to capture cost increases and improve returns on equity, further underpinning the favorable long-term financial outlook.

Sempra Energy reported a fourth-quarter earnings per share (EPS) miss and significantly lowered its 2025 EPS guidance by approximately 58 cents, indicating a negative adjustment in financial expectations. The reduction in guidance is attributed to lower net income projections across its California and Texas operations, primarily driven by diminished returns on equity and increased operational expenses, which collectively indicate challenges in maintaining prior growth trajectories. Furthermore, Sempra Infrastructure's contributions were adversely impacted by lower natural gas prices, reduced equity earnings, and declines in renewable energy revenues, underscoring a broader trend of financial setbacks that detract from long-term growth prospects.