On Wednesday, Evercore ISI, a prominent investment firm, increased its price target for Edison International (NYSE:EIX) shares to $88.00, up from the previous $82.00, while keeping an Outperform rating on the stock.
The adjustment followed a Non-Deal Roadshow (NDR) in Boston with Edison International's management, including CFO Maria Riggati and VP of Investor Relations Sam Ramraj.
The firm has expressed a positive outlook on Edison International for several reasons. First, it anticipates a favorable General Rate Case (GRC) outcome, which is expected to enhance the company's earnings significantly.
Additionally, there is the potential for a settlement related to the company's ongoing TKM case, which could positively impact financial projections and set a beneficial precedent for the upcoming Woolsey filing.
Moreover, Edison International is experiencing faster-than-expected load growth within its service area. This development presents opportunities for capital reallocation within the GRC and additional investments over the planning period, which could be recouped through standalone applications.
Furthermore, the company is looking at incremental capital opportunities with the forthcoming NextGen ERP filing later this year and the Advanced Metering Infrastructure (AMI) 2.0 application projected for 2025.
The investment firm also noted Edison International's effective wildfire mitigation strategies during a challenging wildfire season. The company has only filed one Electric Incident Report for the minor Pauba fire to date.
Separately, it was mentioned that Edison International does not expect any significant damage from the 4.4-magnitude earthquake that struck Los Angeles County earlier in the week, indicating resilience in the face of natural disasters.
The combination of these factors underpins Evercore ISI's decision to maintain an Outperform rating and raise the price target for Edison International.
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