-- 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.