UBS Downgrades Edison International to Neutral, Lifts Target 11% to $78
Edison International rallied 21% over six months versus 1% for the Dow Jones Utility Index, leading UBS to cut its rating to Neutral and lift price target 11% to $78. UBS cites constrained upside and near-term headwinds from a six-month wildfire legislation delay, unresolved Eaton fire liability, California election risks.
1. UBS Rating Adjustment
On February 13, UBS revised Edison International’s recommendation from Buy to Neutral while raising its one-year price target by 11% to $78, reflecting the stock’s strong repricing following recent gains.
2. Recent Stock Performance
Shares have climbed 21% since mid-2025, outperforming the 1% gain for the Dow Jones Utility Index; after peaking near $88 in late 2024, the stock retraced by mid-2025 before recovering 23% year-to-date.
3. Near-Term Headwinds
UBS highlights constrained upside given potential delays in Phase 2 wildfire legislation by roughly six months, unresolved liability from the Eaton fire incident and regulatory uncertainties tied to the upcoming California gubernatorial election.