These are top 10 stocks traded on the Robinhood UK platform in July
On Monday, Evercore ISI reaffirmed its positive stance on Edison International (NYSE:EIX), maintaining an Outperform rating and a $77.00 price target. According to InvestingPro data, this target represents significant upside potential from the current price of $57.21, with the stock trading near its 52-week low of $55.27. Despite recent market challenges, Edison maintains a robust 5.62% dividend yield, having consistently paid dividends for 22 consecutive years. The endorsement follows a preliminary review of Edison's infrastructure in relation to a recent fire incident. Analysts at Evercore ISI noted that Edison's examination of four transmission lines running through Eaton (NYSE:ETN) Canyon did not reveal any faults in the 12 hours leading up to the fire. Additionally, the review included other sections of the system, identifying a fault at 6:11 pm on a line between the Gould and Eagle Rock substations, which are situated at a considerable distance from the fire's origin and do not pass through Eaton Canyon.
The findings indicated that the fault caused a temporary and expected surge in current across Edison's network, which stayed within the designed operational limits and did not activate any system protection mechanisms on the lines in question. This information comes after a New York Times (NYSE:NYT) report on Sunday disclosed that Edison was investigating a video showing light flashes in the Eaton area moments before the fire's ignition. The company is currently evaluating any potential links between these flashes and its facilities in Eaton Canyon.
While Edison's preliminary investigation has not found any evident damage to its equipment, the company is continuing to thoroughly assess the condition of its infrastructure. The ongoing evaluation is part of Edison's commitment to safety and reliability in its operations. The utility provider's shares reflect the market's reception of these developments and the confidence expressed by Evercore ISI's latest report. InvestingPro analysis indicates the stock is currently in oversold territory, with multiple additional insights available to subscribers. Edison International, with its $22.14B market capitalization and FAIR financial health score, is actively cooperating with authorities and has promised to provide updates as more information becomes available.
In other recent news, Edison International is under scrutiny following a lawsuit alleging their equipment may have sparked the Eaton fire in Southern California, leading to significant fatalities and property loss. The company has responded with a regulatory update, stating that their systems were operating as intended at the time of the fire, and they are cooperating with ongoing investigations. Meanwhile, global data analytics firm Verisk (NASDAQ:VRSK) has projected insured property losses from the Palisades and Eaton fires to be between $28 billion and $35 billion.
Edison International's stock rating was recently upgraded from Sell to Neutral by Ladenburg Thalmann, reflecting the potential worst-case scenarios related to the wildfires. In addition, Barclays (LON:BARC) analyst Nicholas Campanella revised the price target for Edison International shares to $67.00 while maintaining an Overweight rating. These adjustments come ahead of the company's fourth-quarter 2024 preview and investment update, which is anticipated later this month.
Amid these developments, a brush fire known as the Hughes Fire has rapidly spread in the Castaic region of northern Los Angeles County, covering over 3,400 acres. As the situation evolves, investors are keenly awaiting Edison International's forthcoming financial outlook and plans to manage the implications of the recent wildfires on its operations and finances.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.