Edison put ‘stamp of confidence’ on wildfire constructs, says Guggenheim

Guggenheim says Edison International (EIX) on its Q4 earnings call “put a strong stamp of confidence” in the existing constructs and stakeholder urgency to provide assurance for the wildfires. The stock in morning trading is up 7% to $54.80. The overarching story for Edison in 2025 has been the southern California wildfires and potential test of legislated wildfire constructs, the analyst tells investors in a research note. The firm believes the messaging on the urgency for state stakeholder assurances of the construct continues to resonate, which is starting to build confidence of the regulatory construct. Guggenheim recognizes it is difficult for investors to put trust in the California constructs, but is “increasingly constructive on the messaging from the state on a proactive approach to secure the constructs.” It keeps a Neutral rating on Edison International shares with a $60 price target The Q4 execution story is “overshadowed by wildfire construct uncertainty,” the firm says.