Edison's Stock Rebounds, But Wildfire Fallout Looms--Legal Fears Far From Over!
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.
- Warning! GuruFocus has detected 10 Warning Signs with EIX.
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.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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