Sempra Energy (SRE)

Looking ahead, a base of stable earnings, steady progress at Sempra Energy's (SRE - Analyst Report) LNG terminals, regulatory approval of utility rate cases and the Sunrise Powerlink transmission line, operational REX-West, and completion of its first solar power project, collectively support the bullish outlook for SRE.

Furthermore, given a discount in P/E multiples, we maintain our BUY recommendation on SRE with a six-month target price of $45.50.

Price appreciation to our near-term valuation target coupled with a sustainable and secure, recently increased quarterly dividend of $0.39 per share based on low projected earnings payouts represents annualized total return potential of 23.9%.