Credit Suisse Upgrading Edison International (EIX) OUTPERFORM D. Eggers

Credit Suisse is upgrading shares of Edison International

to Outperform and it has a $41 price target on shares. In a note to clients, Credit Suisse writes, "Our take. We think EIX's share price fails to reasonably value the Southern California Edison (SCE) utility let alone any option value for the Edison Mission (

) merchant generation business. Using our Rate of Return framework we see EIX offering a 13% annualized return using SCE earnings less Hold Co obligations, ranking near the top of all regulated utilities; on P/E EIX utility trades at 11.1x 2013 or 1x cheap to utilities." Shares of EIX closed at $35.14 yesterday.