Sempra's stock has experienced a significant increase in value since our previous recommendation, prompting a reevaluation of its investment potential. The energy infrastructure company recently divested an additional 45% of its interest in Sempra Infrastructure Partners, a move poised to deliver considerable long-term strategic advantages.
While Sempra maintains a robust BBB+ credit rating from S&P, a key indicator of its financial health and stability, the current market price of its shares has surpassed my calculated fair value. This overvaluation suggests that the immediate upside for investors is somewhat constrained.
Therefore, I am maintaining a neutral stance on Sempra. Although the company demonstrates strong fundamentals and positive developments, I believe it is prudent to defer a \"buy\" rating until a more attractive entry point emerges, offering greater potential for capital appreciation.