Edison International (NYSE:EIX) takes a hit as lawsuits and accusations pile up over its possible role in Southern California's wildfires. After tumbling 23% this month, the stock was up 5% Wednesday, closing at $61.30.
Ladenburg Thalmann upgrades the stock to neutral from sell, saying its $56.50 target price factors in worst-case wildfire risks. Still, analysts at Barron's note that a full assessment of Southern California Edison's involvement may not happen until mid-2025.Wildfire concerns have had lawmakers create a wildfire insurance fund after past fires triggered investor panic and credit rating threats.
Consequently, Zacks downgraded Edison to neutral, citing rising wildfire-related costs. The firm still expects operating revenue to climb in 2025 and 2026 but warns that decommissioning costs could weigh on results.For now, uncertainty looms. Investors brace for more legal and regulatory fallout as Edison faces scrutiny over its role in the disaster.
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