UPDATE: Mizuho Securities Upgrades Sempra Energy (SRE) to Buy
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Mizuho Securities analyst Anthony Crowdell upgraded Sempra Energy (NYSE: SRE) from Neutral to Buy with a price target of $148.00 (from $129.00).
The analyst comments "We are upgrading Sempra to Buy from Neutral following Sempra's announcement that it sold down 20% of SIP for an attractive 13.4x multiple. We believe management will have a successful IEnova tender and be able to recycle the cash proceeds into their CA and TX utilities, and will use the remaining proceeds to strengthen the balance sheet. Mizuho believes the IEnova tender will be successful and, with other positive catalysts such as higher capex and refreshed earnings guidance, we upgrade to Buy. Our $148 PT (was $129) reflects updated P/E multiples and applies a 10% discount to KKR's SIP offer of a 13.4x EV/EBITDA multiple."
Shares of Sempra Energy closed at $138.14 yesterday.
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