Edison International (EIX – Research Report), the Utilities sector company, was revisited by a Wall Street analyst on April 5. Analyst Anthony Crowdell from Mizuho Securities maintained a Buy rating on the stock and has a $75.00 price target.
Anthony Crowdell has given his Buy rating due to a combination of factors influencing the future performance of Edison International. The company’s management has been actively working to mitigate risk as it navigates through the General Rate Case (GRC) and the Track Milestone (TKM) cost recovery proceeding. The early concerns of 2024 regarding the Cost of Capital are dissipating as regulatory challenges subside, which is likely to improve market sentiment and drive performance into 2025. Additionally, the current price-to-earnings (P/E) discount of 16% observed in Edison International’s stock is expected to narrow as investors shift their focus toward the company’s prospects in 2025 and beyond.
The narrowing bid/ask spread in the Southern California Edison (SCE) rate case suggests a potential alignment in rate increase discussions, which bodes well for the company’s rate base growth forecast. Moreover, with a possible recovery decision related to the 2017 wildfires and mudslides on the horizon, and the potential upside from a favorable appellate court decision on inverse condemnation, Crowdell anticipates possible improvements to Edison International’s earnings per share (EPS) and funds from operations (FFO) to debt metrics. These elements combined signal a positive outlook for Edison International, supporting Crowdell’s Buy recommendation.
EIX’s price has also changed moderately for the past six months – from $60.690 to $70.820, which is a 16.69% increase.
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Edison International (EIX) Company Description:
Founded in 1886 and based in California, Edison International is a renewable energy company, which through its subsidiaries, generates and distributes electric power, and invests in energy services and technologies.
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- Edison International sees FY24 core EPS $4.75-$5.05, consensus $5.06
- Edison International reports Q4 core EPS $1.28, consensus $1.16
