We recently compiled a list of the 10 Companies That Analysts Just Upgraded. In this article, we are going to take a look at where Sempra (NYSE:SRE) stands against the other companies that just upgraded.

The last week was full of negativity as the S&P went down nearly 3.5%. Matters were made worse by raging wildfires in Los Angeles, which have shocked people across the country. Amidst all this, there were a lot of positive developments as analysts continued to point out companies poised for a great performance in 2025.

Artificial Intelligence stocks continue to dominate coverage despite the fear of a slowdown in spending. With agentic AI the new hype, many companies are only just entering their AI journey, so investors still have a lot of undervalued plays that are worth looking at.

To come up with the list of 10 companies that analysts just upgraded, we only considered companies with a market cap of at least $1 billion.

A power transmission tower with a desert sunset in the background, symbolizing power and energy.

Sempra (NYSE:SRE)

Sempra received an upgrade from Morgan Stanley, which raised its price target to $98 from $85. The analysts at Morgan Stanley expect strong growth this year. Sempra operates in California and Texas. With Texas boasting the most data center-related activity among all US states, the company is set to benefit from the continuing AI spending.

Sempra has been struggling recently to manage its rising costs as well as declining revenues in the state of California. However, there are considerable growth avenues going ahead which, when looked at in the context of its stable and strong business, offer a promising risk-to-reward ratio. In fact, even though its California business is declining, the cash flows continue to stay at healthy levels.

Sempra is also different from its peers in that it has investments in both LNG and renewable energy infrastructure. The stability, diversification, and growth make for a sound investment which is reflected in the recent ratings upgrades.

Overall SRE ranks 10th on our list of the companies that just upgraded by analysts. While we acknowledge the potential of SRE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SRE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.