JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, Evercore ISI analyst Durgesh Chopra increased the price target for Edison International (NYSE:EIX) shares, raising it to $61.00 from the previous target of $56.00. The firm maintained an Outperform rating on the stock. Trading at a P/E ratio of just 8x, the stock appears undervalued according to InvestingPro analysis. Chopra highlighted the company’s optimistic view regarding the push for enhanced wildfire legislation in California. Edison International believes that a financially stable utility sector is more cost-effective for customers.
The company estimates that the process to determine the cause of a fire and conclude prudency proceedings could span four years, noting that a similar process, the TKM, took six years, including COVID-related delays. Despite recent challenges that led to a 31% stock decline over the past six months, Edison is confident that it adhered to the necessary protocols for the idle transmission line under investigation for a recent fire and expects to maintain its presumption of prudency.
Edison International’s management cited two recent positive developments that support their outlook: the unanimous Commission approval of the TKM settlement and a favorable settlement in the WMCE proceeding, which approved nearly all proposed capital expenditures and operations & maintenance costs.
The utility company’s earnings per share (EPS) growth projections take into account various potential outcomes related to the cost of capital. Edison International also stated that proposed changes to the Inflation Reduction Act (IRA) legislation would not affect its financial plan, as the monetization of tax credits benefits customers.
Lastly, the company is open to settling the Woolsey case if a reasonable outcome can be achieved, drawing a comparison to the positive signal sent by the TKM settlement. With a robust 5.87% dividend yield and 22 consecutive years of dividend payments, Edison International continues to reward shareholders while pursuing growth. The company noted strong load growth, driven by a diverse customer base, increasing electric vehicle demand, and building electrification, which may necessitate a re-prioritization of capital expenditures. For deeper insights into Edison International’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Edison International reported its Q1 2025 earnings, revealing an earnings per share (EPS) of $1.37, which fell short of the forecasted $1.41. The company’s revenue also missed expectations, coming in at $3.81 billion against a projected $4.4 billion. Despite the earnings increase from the previous year, the results did not meet analyst expectations. Edison International continues to focus on infrastructure improvements and regulatory engagement, particularly in California’s utility market. The company reaffirmed its long-term EPS growth expectation of 5-7% from 2025 to 2028. Major investments in grid resilience and wildfire mitigation are ongoing, with a focus on enhancing metering infrastructure. Analysts and investors are closely monitoring the company’s ability to manage regulatory changes and potential wildfire-related liabilities. Edison International remains confident in its ability to meet its 2025 EPS guidance and deliver a 5% to 7% core EPS compound annual growth rate through 2028.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.