Analyst Says It As A 'Buy' In The Electrification Era, Upgrades Edison's Stock

Mizuho Securities analyst Anthony Crowdell upgraded Edison International EIX to Buy from Neutral at an increased price target of $75 from $73. 

The analyst is bullish on the company, given its ability to deliver the EPS CAGR target of 5%-7% and management's extension of the EPS growth rate projection through 2028.

Crowdell sees low risk to management's ability to deliver on its growth rate as the Southern California region continues moving towards electrification, supporting EIX's rate base growth of 8% or higher.

The analyst raised EPS estimates to $5.11 (from $4.96) for FY24 and $5.72 (from $5.27) for FY25.

The analyst's revised estimates do not include recovery of annual interest expense of $245 million related to the 2017/18 events.

Crowdell's 2025 forecast is at par with management's guidance of $0.70 (12% of EIX EPS) of AFUDC earnings and operational variances.

Last month, EIX reported Q2 adjusted EPS of $1.01, beating the consensus of $0.95 and sales of $3.96 billion, missing the $4.27 billion estimate. 

Price Action: EIX shares are trading higher by 1.06% at $69.74 on the last check Tuesday.