Edison International (EIX) PT Raised to $97 at Argus

Argus analyst Marie Ferguson raised the price target on Edison International (NYSE: EIX) to $97.00 (from $82.00) while maintaining a Buy rating.

The analyst comments "We are maintaining our BUY rating on Edison International (NYSE: EIX), reflecting a robust outlook at the company’s Southern California Edison (SCE) electric utility. We expect the sector to see fundamental growth in 2024 and to follow historical trends and improve as interest rates decline. We are raising our target price to $97 from $82. The company benefits from a favorable regulatory environment, a solid balance sheet, and a large residential customer base in suburban Southern California. It is also a leader in renewable energy and the state’s high EV sales should drive increased demand. EIX has eliminated the use of coal, and generates a substantial share of its electricity from nuclear, solar, wind, and hydropower. The company has no natural gas operations. While last year had low fire occurrence, Edison has faced significant legal issues as well as high costs related to wildfire damage in California. It has reached a settlement with California regulators regarding fires in 2018, though it will need to cover remaining wildfire claims pending the recovery of claim costs. If further regulatory rate recovery is authorized, the company could see significant earnings growth in 2024 and 2025. We believe that the stock is favorably valued relative to peers based on P/E, price/sales, and PEG multiples. EIX also pays a dividend with an above-peer-average yield of about 3.6%."

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