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Ahead Of The Bell: Sempra Energy Downgraded

The Associated Press

NEW YORK (AP) — An analyst downgraded Sempra Energy Wednesday, saying the energy services holding company's shares have reached a fair price.

Jefferies & Co. analyst Debra Bromberg lowered her rating to "Hold" from "Buy."

Over the past two months the company's stock has climbed nearly 30 percent.

The company on Tuesday posted first-quarter earnings of $316 million, or $1.29 per share, compared with $242 million, or 92 cents per share, in the prior-year period. Results exceeded consensus estimates of $1.02 per share, according to a poll by Thomson Reuters.

Revenue slid to $2.1 billion from $3.3 billion. Analysts forecast revenue of $2.8 billion.

Based on its strong first quarter, Bromberg increased her 2009 earnings per share estimates to $4.50 per share from an earlier forecast of $4.40 per share. For 2010, she raised her profit estimate to $5.10 per share from $5.05 per share.

"The revisions reflect higher assumed earnings from Sempra Commodities and a slightly lower assumed effective tax rate in 2009," Bromberg said.