Edison International (EIX) Shares Surge 2.58% to 5.30% Intraday High on Regulatory Clarity, Wildfire Progress

Edison International (EIX) shares surged 2.58% on August 29, 2025, reaching their highest level since August 2025, with an intraday gain of 5.30%. The rally reflects renewed investor confidence driven by regulatory clarity, strategic dividend commitments, and progress in wildfire liability management.

UBS maintained its “Buy” rating for EIX, citing favorable outcomes in Edison’s rate case and potential resolution of wildfire-related disputes. Analysts highlighted that the company’s valuation multiple of 9x 2027 estimated earnings suggests market optimism about long-term growth, despite near-term operational challenges. The firm also noted Edison’s focus on grid modernization and electrification aligns with California’s clean energy goals, positioning it to benefit from policy-driven infrastructure investments.

On August 28, Edison and Southern California Edison announced preferred dividend payments, reinforcing their commitment to shareholder returns. This move, coupled with a 4% monthly stock price increase, signals financial stability amid mixed first-half 2025 earnings. The company’s five-year total return of 29.83% underscores its resilience in navigating regulatory and environmental risks, including wildfire liabilities that have complicated its clean energy transition.

Wildfire-related legal and operational risks remain a key focus. Edison has prioritized liability management in regulatory filings, aiming to balance infrastructure investments with financial risk mitigation. Analysts anticipate that clarity on wildfire fund settlements and regulations could act as a catalyst, reducing uncertainty and enhancing investor sentiment. However, unresolved liabilities and potential margin compression—from 15% to 12.4% over three years—highlight the need for disciplined cost management.

Looking ahead, Edison’s projected EPS of $6.47 by 2027 implies a 21% upside to the current $54.72 stock price. While its one-year returns lag behind broader market benchmarks, long-term investors remain focused on its decarbonization initiatives and alignment with California’s energy policies. UBS’s price target of $68 and the broader analyst consensus of $66.23 reflect confidence in Edison’s ability to deliver steady shareholder value despite ongoing challenges.