Edison International (NYSE:EIX) Retains UBS Buy Rating Despite Financing Concerns

Edison International (NYSE:EIX) ranks among the best stocks to buy for retirement. UBS retained its Buy rating for Edison International (NYSE:EIX), with a price target of $68 on August 20. According to UBS analyst Gregg Orrill, while the proposed ruling in Edison’s rate case permits the rate base as expected, debates and comments filed indicate possible financing gaps that, if not addressed, might lead to underinvestment.

On the other hand, UBS noted a number of potential drivers for Edison International (NYSE:EIX), including a potential settlement for the Woolsey disaster and the enactment of wildfire regulations, which the firm described as “Wildfire Fund Clarity a Potential Positive.”

According to UBS, the stock is currently prices in a $2 billion equity issuance at 9x the company’s 2027 estimated earnings per share of $6.47. The firm also noted that Edison International (NYSE:EIX) indicated during its second-quarter earnings call that it might wait a few weeks after the rate case decision before providing guidance.

Based in California, Edison International (NYSE:EIX) is a public utility company that specializes at generating power from a variety of sources, including renewable energy, nuclear energy, and natural gas.

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Disclosure: None. This article is originally published at Insider Monkey.