Jefferies Raises Price Target on Edison International (EIX) Slightly, Cuts EPS Estimates
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Price: $74.66 +1.66%
Rating Summary:
14 Buy, 13 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
14 Buy, 13 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Jefferies is reiterating its Buy rating on shares of Edison International (NYSE: EIX) and is raising its price target slightly from $45 to $45.50.
The firm has lowered its Q4 and FY11 EPS estimates by $0.05 to $0.40 and $2.85 as a result of weaker commodity prices. The company's new figures are well below the Street's consensus of $0.47 and $2.92 and the company's original guidance of $2.90-$3.00.
Jefferies is also reducing its FY12 and FY13 EPS estimates by $0.25 to $2.05 and $2.20 due to a reduction in the forward price for gas and power. The firm has reduced its FY14 EPS estimate by $0.40 to $2.95.
An analyst at Jefferies comments, "We think it is a mistake to penalize the company and assign negative value to the merchant business. Under the worstcase scenario, Edison International will likely walk away from its merchant business, which is structurally separate from the rest of the company, rather than inject the capital.
For an analyst ratings summary and ratings history on Edison International click here. For more ratings news on Edison International click here.
Shares of Edison International closed at $40.57 yesterday.
The firm has lowered its Q4 and FY11 EPS estimates by $0.05 to $0.40 and $2.85 as a result of weaker commodity prices. The company's new figures are well below the Street's consensus of $0.47 and $2.92 and the company's original guidance of $2.90-$3.00.
Jefferies is also reducing its FY12 and FY13 EPS estimates by $0.25 to $2.05 and $2.20 due to a reduction in the forward price for gas and power. The firm has reduced its FY14 EPS estimate by $0.40 to $2.95.
An analyst at Jefferies comments, "We think it is a mistake to penalize the company and assign negative value to the merchant business. Under the worstcase scenario, Edison International will likely walk away from its merchant business, which is structurally separate from the rest of the company, rather than inject the capital.
For an analyst ratings summary and ratings history on Edison International click here. For more ratings news on Edison International click here.
Shares of Edison International closed at $40.57 yesterday.
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