A Look At Sempra (SRE) Valuation After Wells Fargo’s Overweight Upgrade And Planned KKR Ecogas Transactions

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Wells Fargo recently upgraded Sempra (SRE) to Overweight, prompting a re-evaluation of the utility’s stock given its business simplification and planned transactions with KKR and Ecogas. Sempra is trading near US$97.41, against an average analyst target of US$102.69, suggesting a 5% undervaluation based on one fair value estimate. However, its P/E ratio of 35.4x compared to an industry average of around 20x raises concerns about its current valuation.

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