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What Analysts Think of Edison International Stock

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Edison International

Edison International (EIX) stock has an estimated upside of more than 13% for the next 12 months and a median target price of $65.7. Currently, Edison International is trading at $58.1.

Of the 17 analysts tracking EIX, four have given the stock “strong buys,” five have given it “buys,” seven have given it “holds,” and one has given it a “sell.” JPMorgan Chase cut EIX’s price target from $59.0 to $58.0 on January 14.

EIX

Edison International stock witnessed a huge slump in November after the wildfires started in northern California. PG&E Corporation (PCG), one of the largest utilities in the state, is planning to file for bankruptcy given its potential liabilities associated with the wildfires.

Dividend profile

Edison International is currently trading at a dividend yield of 4.1%, higher than the yields of its peers. The company’s five-year dividend growth rate is 12% compounded annually. In comparison, utilities at large have managed to increase their dividends by ~4% in the same period.

Edison International stock is trading at a forward PE multiple of 15x based on its estimated EPS for the next 12 months. In comparison, utilities’ average forward PE multiple is ~16x–17x. EIX’s five-year historical average valuation is ~18x, indicating that it seems to be trading at a discounted valuation to its historical and peer averages.

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