The firms believe that the company’s growth will come mainly from infrastructure expansion at its utilities over the next several years, which will require continued constructive regulation. They also believe that the company will be challenged to offset the pressure on earnings beginning in 2012 when an above-market priced contract at Sempra Generation expires. Though the firms appreciate the company’s diversified mix of gas and power assets and consider its management team to be one of the best and most forward-looking in the industry, they also believe that these positives are already reflected in the company’s stock price. Overall, the cautious firms consider the shares to be fairly valued.