Zacks Investment Research downgraded shares of Sempra Energy (SRE) from NEUTRAL to UNDERPERFORM on July 26, 2013, with a target price of $79.00.
We downgrade our recommendation on Sempra Energy to Underperform from Neutral based on the company's reduced expectation for 2013 earnings. Also, the earnings miss in the first quarter due to weak earnings across its business segments (except for the Sempra Natural Gas unit) compels us to remain bearish for now. Other factors that keep us concerned include the lack of any near-term positive triggers, near-term concern over natural gas prices and pending regulatory cases. However, the company's lower risk profile, growing dividend, steady progress at its LNG terminals and renewable power projects could be possible offsets.
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