Sempra Energy's shares traded at $84.30 on Sept. 3, just 6.8% above a 52-week low of $78.97, as investors weighed the impact of California's SB 492 legislation passed on Aug. 29. The bill removed a key wildfire fund replenishment mechanism, leaving Sempra's subsidiaries SDG&E and SoCalGas exposed to potentially uncapped wildfire liability.
Analysts offered mixed reactions to the regulatory shift. Mizuho downgraded Sempra from Outperform to Neutral and slashed its price target to $84 from $104, while Jefferies upgraded the stock to Buy with a $97 target. JPMorgan trimmed its target to $102 from $113 but maintained an Overweight rating, and Wells Fargo reiterated its Buy stance. The average analyst price target stands at roughly $98, implying a 21.7% upside from current levels.
The stock's dividend yield remains attractive at 3.1%, with an annualized payout of $2.63 per share and a quarterly payment of $0.6575 scheduled for Oct. 15. Sempra trades at a 14% P/E discount to electric utility peers, with a forward P/E of 16.4x compared to a trailing P/E of 24.2x. Its debt-to-equity ratio stands at 112.2%, and the stock exhibits relatively low volatility with a beta of 0.58.
Sempra's $65 billion capital plan through 2030 remains a key focus, with over 95% allocated to regulated investments. The company has also pursued de-risking measures, including a deal with KKR aimed at reducing equity issuance pressure. The ex-dividend date is set for Sept. 23, with the next quarterly payment following on Oct. 15.
