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Update shared on09 Oct 2025

Fair value Increased 5.63%
AnalystConsensusTarget's Fair Value
US$90.46
2.0% overvalued intrinsic discount
09 Oct
US$92.29
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Narrative Update on Sempra: Analyst Price Target Revision

Analysts have raised their fair value estimate for Sempra from $85.64 to $90.46. This revision is due to stronger profit margin expectations, even as forecasts for revenue growth have moderated.

What's in the News

  • Sempra updated its earnings guidance for full-year 2025, setting the GAAP earnings-per-share (EPS) range at $3.29 to $3.69. The company also reaffirmed a projected long-term EPS growth rate of 7% to 9% through 2029 (Key Developments).
  • The company provided additional guidance expecting GAAP EPS of $4.05 to $4.45 for 2025 and $4.80 to $5.30 for 2026, maintaining its outlook for strong EPS growth in the coming years (Key Developments).

Valuation Changes

  • Fair Value: increased from $85.64 to $90.46, reflecting a higher analyst consensus on the stock’s worth.
  • Discount Rate: unchanged at 6.78%, indicating that risk assumptions remain consistent.
  • Revenue Growth: lowered from 6.79% to 3.03%, representing a significant reduction in expected future sales growth.
  • Net Profit Margin: increased from 21.75% to 24.56%, suggesting that profitability expectations have improved.
  • Future P/E: risen slightly from 21.04x to 21.92x, signaling a marginally more optimistic valuation of future earnings.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.