Edison (EIX) Stock Forecast & Price Target

Edison International is recognized as a high-quality operator, benefiting from improved investor confidence regarding wildfire risk mitigations and significant capital investment needs driven by an expected increase in electricity load due to building electrification. The company anticipates 5-7% core EPS growth through 2028, supported by factors such as substantial recovery from prior wildfire claims, additional capital expenditure opportunities, and a favorable regulatory environment that promotes infrastructure investment. Moreover, management emphasizes the importance of streamlining regulatory processes and adequately resourcing departments, which positions Edison International favorably for ongoing growth in its rate base while maintaining competitive pricing for consumers in California.

Edison International faces significant risks that contribute to a negative outlook, including a dwindling project pipeline and reduced capital spending opportunities, which could hinder future growth. Furthermore, the potential for additional wildfires may escalate liabilities and complicate the regulatory landscape, further exacerbating financial uncertainties. Lastly, there are concerns over changes to the company's dividend policy and the impact on customer bills, which may limit expected rate base growth and lead to unfavorable decisions from the California Public Utilities Commission (CPUC).