Sempra: Solid Utility Growth Story At A Fair Price (Rating Downgrade)

Sempra is rated Hold, reflecting fair valuation and a solid, predictable business model anchored in regulated utilities. SRE projects 7-9% annual adjusted EPS growth through 2030, driven by $13 billion in 2026 infrastructure investments and robust Texas rate expansion. The company maintains a strong balance sheet, targets sub-49% total debt-to-capital, and offers a 2.77% dividend yield with 2-4% annual growth.