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UPDATE: BMO Capital Markets Upgrades Edison International to Outperform on EPS Visibility

Related EIX
Edison International Tops Q2 Earnings on Solid Utility Sales
Earnings Scheduled For July 31, 2014

BMO Capital Markets upgraded Edison International (NYSE: EIX) from Market Perform to Outperform and raised the price target from $47.00 to $56.00.

BMO Capital Markets commented, "With the rate case recently completed and EME (deregulated generation subsidiary) in Chapter 11 proceeding, EIX is now a largely regulated utility. Management has indicated that it expects an incremental $0.31 of EPS in 2013 related to O&M savings, certain tax benefits, and energy efficiency, which we had not previously accounted for and catalyzes our rating upgrade. We see rate certainty through 2014 and expect EIX to retain about 50% of the incremental 2013 EPS benefits in 2014. Moreover, as EIX's capex program potentially begins to decline modestly from its 2013 peak and considering its below-average dividend payout ratio, meaningful dividend growth is possible over the next few years."

Edison International closed at $47.34 on Wednesday.

Latest Ratings for EIX

DateFirmActionFromTo
Sep 2014BarclaysMaintainsOverweight
Sep 2014BarclaysMaintainsOverweight
Aug 2014BMO CapitalUpgradesMarket PerformOutperform

View More Analyst Ratings for EIX
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Upgrades Analyst Ratings

 

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