Edison International is a leading energy company that serves as the parent company of Southern California Edison, one of the largest electric utilities in the United States
The company is primarily engaged in the generation, transmission, and distribution of electricity, providing reliable and sustainable energy solutions to millions of customers in Southern California. In addition to its utility operations, Edison International is also involved in various initiatives focused on clean energy innovation, renewable energy development, and the reduction of greenhouse gas emissions, reflecting its commitment to a sustainable energy future.
Another wildfire caused by strong winds in Los Angeles County, threatening thousands of residents and businesses. Evacuations ordered and roads closed.
Ladenburg Thalmann analyst Paul Fremont upgraded Edison to a Neutral rating and set a price target of $56.50 on Wednesday. With the stock down approximately 20% over the past month, Fremont believes the company's valuation is more in line with downside risks.
On Monday, the stock fell 11.89%—its steepest single-day decline since 2021. Since the wildfires broke out on Tuesday, Edison has lost more than 28% of its market value.
The Los Angeles area is bracing Tuesday for another stretch of "extreme fire weather" as the National Weather service issued a "Particularly Dangerous Situation" red flag warning for Southern California.
Edison International’s CEO commented that the company cannot "rule out" the role of infrastructure in the L.A. wildfires, fueling investor anxiety and a sharp sell-off in the stock.
Traders adopted a cautious approach on Monday as they awaited two critical inflation reports due later this week, seeking clarity on Federal Reserve interest rate policy.
Southern California is preparing for a severe windstorm that could cause wildfires. Power outages, flight delays, and evacuations are expected. Climate change is a contributing factor.
Analyst expects favorable entry point for investors in EIX, PCG, and SRE due to discounts from past wildfire concerns and CA's wildfire risk management mechanisms.
