Jefferies Maintains a 'Buy' on Edison International (EIX); Mission One Step Closer to Davy Jones Locker

Jefferies maintains a 'Buy' on Edison International (NYSE: EIX) price target raised from $45.50 to $48.

Analyst, Paul B. Fremont, said, "Edison management conceded on its 4Q11 earnings conference call that its EMG assets were potentially not viable in the current low gas price environment. The company is working with Homer City lessors to transfer ownership of the plant shortly. EMG is unlikely to make a lease payment on April 1, 2012. It may also seek a recapitalization or restructuring of its Midwest Gen operations following the results of the RPM auction in May."

"We are increasing our 2012 EPS estimate by $0.80 to $2.85 to reflect the elimination of losses at Homer City. The company is expected to provide guidance following the issuance of a final order by the CPUC in its general rate case. We are increasing both our 2013 EPS estimate by $0.95 to $3.15 and our 2014 EPS estimate by $0.85 to $3.80."

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 $42.78 yesterday.

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