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Investing.com - UBS has lowered its price target on Edison International (NYSE:EIX) to $66.00 from $68.00 while maintaining a Buy rating on the stock. The utility company, currently trading at $55.57 with a market capitalization of $21.39 billion, shows strong fundamentals with a GOOD Financial Health Score according to InvestingPro analysis.
The price target reduction reflects a recent change in the Utility group average multiple, according to UBS analyst commentary released Wednesday.
Despite the lower target, UBS remains bullish on Edison International, citing potential catalysts including legislation, a final outcome in the general rate case, and Woolsey fire recovery. The firm also noted the stock’s 8.5x price-to-earnings ratio based on their $6.47 2027 EPS estimate.
Bloomberg reports that work continues on investment securitization legislation that could include a wildfire amendment consistent with concepts from Governor Newsom’s proposal, according to UBS.
The "California Lawmakers Reach Initial Agreement on Wildfire Fund" development from September 10, 2025, could be positive for the company, UBS indicated in its analysis.
In other recent news, Edison International reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.97, which was below analysts’ expectations of $1.28. However, the company exceeded revenue forecasts, achieving $4.54 billion compared to the anticipated $4.44 billion. In a related development, UBS reiterated its Buy rating for Edison International, maintaining a price target of $68. The UBS analyst highlighted potential funding shortfalls in Edison’s rate case, which could lead to underinvestment if not addressed. Additionally, California lawmakers have reached a preliminary agreement to enhance the state’s wildfire utility fund by approximately $18 billion. This agreement aims to prevent depletion of the fund following severe wildfires and involves contributions from both ratepayers and utility shareholders. PG&E Corporation and Sempra also saw positive movements in response to the news. These developments reflect ongoing adjustments within the utility sector in response to regulatory and environmental challenges.
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