.September 11, 2024 Wednesday 04:08:00 PM

Argus analysts have raised their price target for Edison International (NYSE:EIX) to $97, up from $82, while maintaining a Buy rating on the stock. The positive outlook is driven by the strong performance and growth potential of Edison International’s subsidiary, Southern California Edison (SCE). The company is a leader in renewable energy, with a substantial portion of its electricity coming from nuclear, solar, wind, and hydropower. Despite legal challenges and high costs from wildfire damage, Edison International has settled with California regulators and is working to recover additional wildfire-related costs to boost earnings in 2024 and 2025.

The electric utility sector is expected to experience solid growth in 2024, with interest rates predicted to decline. Edison International benefits from a favorable regulatory environment, a healthy balance sheet, and a large residential customer base in Southern California’s suburbs. The company also benefits from California’s robust electric vehicle (EV) market, which is expected to increase electricity demand. Analysts view Edison as attractively valued compared to its peers, with above-average dividend yield of 3.6%, making it an appealing investment opportunity within the utility sector.