Zacks Investment Research upgraded shares of Edison International (EIX) from NEUTRAL to OUTPERFORM on July 10, 2012, with a target price of $55.00.
We upgrade our long-term recommendation on Edison International from Neutral to Outperform owing to the inherent business strength of its regulated utility Southern California Edison. Although the company reported a first quarter earnings miss, we attribute it to a delay in the 2012 General Rate Case (GRC) rate case decision and continuing losses at the Midwest Generation unit. However owing to California's supportive regulatory environment our bullishness on the company remains unfazed. Going forward our bullish outlook for the company is supported by consistent performance throughout its solid base of stable regulated utility operations, favorable resolution of the pending GRC & the cost of capital proceeding, incremental dividend, a steady growth in rate base and ongoing alternative energy projects in-line with the renewable energy mandate.
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