Sempra Energy's (NYSE:SRE) Financial Flexibility Should Remain Intact

Sempra Energy (NYSE:SRE) acquired a couple of South American utilities last week, and the major takeaway, according to Barclays, is Sempra should retain its financial flexibility.

Barclays says, "Wednesday after the close, SRE announced that they were acquiring larger stakes in two South American utilities (Chilquinta Energía S.A. in Chile and Luz del Sur in Peru) for $875M...Deal to be financed with new debt and utilizes otherwise idle off-shore cash: We feel that the most important takeaway from the announcement is that SRE will largely keep its financial flexibility intact...After tweaking our model and incorporating the announced acquisition, we are adjusting our '11/'12 EPS estimates to $4.10/$4.21 and taking our PT to $57."

Barclays reiterates an "Overweight" rating on Sempra Energy (SRE), which closed Friday at $52.43, up $0.13, or 0.25 percent. Barclays lowered their price target on Sempra from $58 to $57.