UPDATE: Citigroup Downgrades Edison International to Neutral on Valuation

Citigroup lowered its rating on Edison International

from Buy to Neutral and reduced its price target from $48 to $52. Citigroup commented, "EIX has closed the valuation gap between peers and now trades at 14.6x our 2014 regulated EPS estimate, compared to the 14.2x regulated utility average. With shares now more appropriately reflecting the value of the regulated business, we are moving to the sidelines and downgrading to Neutral. Our fundamental outlook has not materially changed. We still believe there is upside for EIX shares, but our updated $52/share target price and 12% estimated total return is no longer commensurate with a Buy rating." Edison International closed at $47.66 on Wednesday.