Sempra Energy Faces Regulatory and Political Challenges, Analyst Maintains Hold Rating with $80 Price Target

Ryan Levine from Citi maintains a Hold rating on Sempra Energy with a price target of $80.00, citing regulatory and political challenges in Texas and California as key considerations. The implementation of TX SB6 and political developments in California, such as the passage of AB1054, are expected to impact Sempra's operations and financial performance. The anticipated dilution from the California Wildfire Fund recapitalization and regulatory lag in Oncor's rate case resolution are also significant factors.

Ryan Levine from Citi has maintained a Hold rating on Sempra Energy, with a price target of $80.00, citing a range of regulatory and political challenges in Texas and California as key considerations [1]. The implementation of TX SB6 in Texas and political developments in California, such as the passage of AB1054, are expected to impact Sempra's operations and financial performance. Additionally, Levine notes the potential impact of the California Wildfire Fund recapitalization and the regulatory lag in Oncor's rate case resolution [1].

The regulatory environment in Texas, particularly TX SB6, introduces new rules and requirements that could affect Sempra's operations and financial performance. The focus is on how these regulations will minimize stranded costs and encourage investments, with further details expected to emerge in the coming months [1]. In California, the passage of AB1054 and other affordability bills could influence Sempra's financial outlook. The anticipated dilution from the California Wildfire Fund recapitalization and the regulatory lag in Oncor's rate case resolution are also significant factors contributing to a cautious outlook, justifying the Hold rating as the company navigates these uncertainties [1].

According to TipRanks, Levine is a 4-star analyst with an average return of 7.0% and a 62.64% success rate. Levine covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, DTE Energy, and Duke Energy [1].

References:
[1] https://www.tipranks.com/news/ratings/cautious-outlook-for-sempra-energy-amid-regulatory-and-political-challenges-ratings?mod=mw_quote_news