Edison International Retains UBS Buy Rating Despite Financing Concerns

Edison International (NYSE:EIX) retains UBS's Buy rating with a $68 price target. Despite financing concerns, UBS notes potential drivers such as a Woolsey disaster settlement and wildfire regulations. The stock is currently priced in a $2 billion equity issuance at 9x 2027 estimated earnings per share of $6.47. Edison International is a public utility company specializing in power generation from various sources, including renewable energy, nuclear energy, and natural gas.

Edison International (NYSE: EIX), a major player in the utilities sector, has retained UBS's Buy rating with a price target of $68. The rating reflects UBS's optimism about the company's potential drivers, such as the Woolsey disaster settlement and evolving wildfire regulations. However, the analyst firm also acknowledges financing concerns, highlighting the complexities of the stock's valuation.

Despite these concerns, the stock is currently priced in a $2 billion equity issuance at a forward price-to-earnings (P/E) ratio of 9x based on the estimated earnings per share (EPS) of $6.47 for 2027. Edison International's diverse portfolio of power generation sources, including renewable energy, nuclear energy, and natural gas, positions it well in the evolving energy landscape.

UBS's analysis underscores the significance of the Woolsey disaster settlement and wildfire regulations in shaping Edison International's future. The settlement, which is expected to result in significant payments, could impact the company's financial health. However, the analyst firm believes that the potential benefits, such as regulatory compliance and reduced risk, outweigh the costs.

Moreover, the evolving wildfire regulations are seen as a positive factor. As wildfires become more prevalent due to climate change, regulations are tightening to mitigate risks. Edison International, with its diverse energy portfolio, is well-positioned to adapt to these regulations and capitalize on the opportunities they present.

The stock's valuation reflects a balance between these potential drivers and the financing concerns. The $2 billion equity issuance at a forward P/E ratio of 9x indicates a cautious approach to the stock's valuation, acknowledging the risks associated with financing and regulatory uncertainties.

In conclusion, Edison International's retention of UBS's Buy rating reflects a nuanced view of the company's prospects. While financing concerns remain a factor, the potential drivers of the Woolsey disaster settlement and wildfire regulations present compelling opportunities. Investors should closely monitor the company's progress in these areas and the broader regulatory environment.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-edison-international-eix-shares-sold-by-gabelli-funds-llc-2025-08-27/
[2] https://www.marketbeat.com/instant-alerts/filing-allstate-corp-acquires-8962-shares-of-edison-international-eix-2025-08-24/