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FINWIRES

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Sempra

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $14 to $107, based on 20.5x our next-12-month EPS estimate of $5.20, a premium to its five-year average of 17.3x and roughly in line with peers. We lower our 2026 EPS view by $0.18 to $5.11 and 2027 EPS by $0.12 to $5.53. SRE achieved major regulatory wins in Texas in Q1 2026, including approval of Oncor's base rate case with improved returns (9.75% ROE, 43.5% equity layer) and implementation of the UTM mechanism to reduce regulatory lag. Additionally, SRE submitted a 127 GW qualifying load forecast to ERCOT (4x Oncor's current 31 GW peak load), which we think highlights the growth potential from Texas data center demand. We note somewhat weaker investor sentiment for California utilities given the state's wildfire history and some indications of a tightening regulatory environment in the state. However, Texas is expected to represent nearly 60% of rate base by decade-end, with regulated utilities comprising roughly 95% of the earnings mix by 2027.

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Research Alert: Otex Delivers Q3 Beats; Enterprise Cloud Bookings Accelerates.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OTEX reported Q3 revenue of $1.283B, growing 2.2% Y/Y and beating consensus by $10M, while non-GAAP EPS of $1.01 exceeded estimates by $0.09 and grew 23.2% Y/Y. Cloud revenue rose 6.6% to $493M with enterprise cloud bookings accelerating 29.6% to $196M, marking the 21st consecutive quarter of cloud organic growth. The enterprise cloud bookings acceleration suggests OTEX's "Enterprise Information Management for AI" positioning is gaining customer traction amid the enterprise AI transition. The completion of CEO transition with Ayman Antoun's April 2026 start removes a key business overhang for the stock. Adjusted EBITDA margin expanded to 34.1% from 31.5% prior year, demonstrating strong operational leverage despite continued AI and cloud investments. We believe the company's disciplined cost management supports margin expansion. The company returned $313M to shareholders including $247M in repurchases, though free cash flow declined 18.4% to $305M on higher capex and working capital changes.

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