Deutsche Bank Downgrades Sempra Energy (SRE) to Hold; Revises 2009-12 EPS Estimates
SRE Hot Sheet
Rating Summary:4 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank downgrades Sempra Energy (NYSE: SRE) from Buy to Hold. Price target $52.
Deutsche analyst says, "We continue to like SRE's utilities and natural gas infrastructure businesses that provide exposure to growing utility rate base, the REX pipeline and potential increases in LNG imports. That said, after outpacing the UTY by over 20% since the beginning of 2009, SRE currently trades at ~10.0x our 2010 EPS estimate of $5.12/share (near its diversified peer average) despite nearly 30% of its earnings being derived from its commodities trading JV. We view the risk/reward in SRE shares as balanced at current levels and are moving to a Hold rating...We could become more constructive on SRE shares again if we see: 1.) Pullback in the stock that presents adequate total return potential; 2.) Additional energy infrastructure projects that provide growth beyond 2013; 3.) Additional contracted capacity at attractive margins at LNG terminals; and/or 4.) Increased long term market heat rate assumptions in WECC...We have revised our 2009-2012 EPS estimates to $4.50, $5.12, $5.45 and $5.73, respectively."
To see more analyst ratings on SRE Click Here.
Sempra Energy is an energy services holding company. The Company, through its business units, provides electric, natural gas and other energy products and services.
Deutsche analyst says, "We continue to like SRE's utilities and natural gas infrastructure businesses that provide exposure to growing utility rate base, the REX pipeline and potential increases in LNG imports. That said, after outpacing the UTY by over 20% since the beginning of 2009, SRE currently trades at ~10.0x our 2010 EPS estimate of $5.12/share (near its diversified peer average) despite nearly 30% of its earnings being derived from its commodities trading JV. We view the risk/reward in SRE shares as balanced at current levels and are moving to a Hold rating...We could become more constructive on SRE shares again if we see: 1.) Pullback in the stock that presents adequate total return potential; 2.) Additional energy infrastructure projects that provide growth beyond 2013; 3.) Additional contracted capacity at attractive margins at LNG terminals; and/or 4.) Increased long term market heat rate assumptions in WECC...We have revised our 2009-2012 EPS estimates to $4.50, $5.12, $5.45 and $5.73, respectively."
To see more analyst ratings on SRE Click Here.
Sempra Energy is an energy services holding company. The Company, through its business units, provides electric, natural gas and other energy products and services.
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- Barclays Lowers PT and Estimates on Royal Bank of Canada (RY); Coming Off The Bandwagon
- Premier Alliance Group, Inc. Prepares for Significant Growth After California Public Utilities Commission Adopts $454 Million in Demand Response Budgets for PG&E, SDG&E and Southern California
Create E-mail Alert Related Categories
DowngradesRelated Entities
Deutsche BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
