Is Wall Street Bullish or Bearish on Sempra Stock?
Sempra (SRE), based in San Diego, California, operates as an energy infrastructure company. Valued at $49.5 billion by market cap, the company focuses on delivering sustainable energy to consumers, as well as invests in, develops, and operates transmission and distribution infrastructures.
Shares of this utility giant have underperformed the broader market over the past year. SRE has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 9.2%. In 2025, SRE stock is down 13.6%, compared to SPX’s 3.7% decline on a YTD basis.
Narrowing the focus, SRE’s underperformance is also apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 14% over the past year. Moreover, the ETF’s 5.8% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On May 8, SRE shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $1.44 exceeded Wall Street expectations of $1.21. The company’s revenue stood at $3.8 billion, up 4.5% year over year. SRE expects full-year adjusted EPS in the range of $4.30 to $4.70.
For the current fiscal year, ending in December, analysts expect SRE’s EPS to declined marginally to $4.62 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 18 analysts covering SRE stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is slightly less bullish than two months ago, with nine analysts suggesting a “Strong Buy.”
On Apr. 23, Morgan Stanley (MS) analyst David Arcaro kept an “Overweight” rating on SRE and raised the price target to $89, implying a potential upside of 17.5% from current levels.
The mean price target of $80.90 represents a 6.8% premium to SRE’s current price levels. The Street-high price target of $95 suggests an upside potential of 25.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.