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.
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.
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.