Mizuho raises PT on Sempra on $10 bln stake sale of unit

Mizuho raises price target on energy infrastructure company Sempra SRE.N to $93 from $86

The new PT represents an 8% upside to the stock's last close

Co on Tuesday announced agreement to sell 45% stake in its unit Sempra Infrastructure Partners (SIP) for $10 billion

Brokerage believes the reduced business risk associated with less earnings from SIP would drive rating agencies to lower Sempra's downgrade threshold back to at least 14%

"SRE has timed the sale of SIP to minimize equity needs through 2030, and maximized the balance sheet capacity while still taking part in the growth phase of the business" - Brokerage

5 of 13 brokerages rate the stock "buy" or higher, 8 "hold"; their median PT is $82.5

As of last close, stock down ~2% YTD