Barclays Maintains an 'Equalweight' on Sempra Energy (SRE); Digging Deeper

Barclays maintains an 'Equalweight' on Sempra Energy (NYSE: SRE) price target lowered $1 to $58.

Barclays analyst says, "The Strategic Review - We tried to determine the assets that are core vs. non-core, possible valuations if monetized, and options to increase overall firm value...Next Year's Cost of Capital Proceeding - While the market has clearly been focused on this proceeding for all of the CA utilities (YTD CA utilities have underperformed the broader regulated group by 18%), it is our view that in SRE's case, the actual exposure to authorized ROEs is real...Improving Transparency and the "Earnings Quality" Issue - Over time, SRE has acquired an increasingly large presence internationally."

"We think SRE is contemplating the right things -- now it is about executing. While taking good first steps, we hope the company continues to simplify the portfolio and improve its transparency, paving the way towards obtaining a fair multiple." (Barclays lowers FY12 EPS estimate from $4.56 to $4.47)

For an analyst ratings summary and ratings history on Sempra Energy click here. For more ratings news on Sempra Energy click here.

Shares of Sempra Energy closed at $53.03 yesterday.

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