Edison International (EIX) Price Targets Reduced Amid Cautious Outlook for the Utility Sector

Edison International (NYSE:EIX) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.

Edison International (NYSE:EIX) is one of the largest electric utility holding companies in America, focused on providing clean and reliable energy and energy services through its independent companies.

Morgan Stanley analyst David Arcaro reduced the firm’s price target on Edison International (NYSE:EIX) from $64 to $59 on December 16, but maintained its ‘Underweight’ rating on the shares. The analyst noted that the utility sector’s performance will be heavily driven by data centers and growth upside in 2026, given the billions of dollars of investment poured into the industry by Big Tech. The analyst firm advised investors to favor utilities with exposure to data center demand growth and avoid companies facing heavier affordability scrutiny, given that 2026 is an election year.

Earlier on December 12, JPMorgan also trimmed its price target on Edison International (NYSE:EIX) from $67 to $65, as the firm revised models in the North American utilities sector. However, the analyst firm maintained its ‘Neutral rating on the shares.

In more positive news, Edison International (NYSE:EIX) reiterated its commitment to shareholders on December 11 by raising its quarterly dividend by 6% to $0.8775 per share. With an impressive annual dividend yield of 6.02%, EIX is included among the 15 Dividend Stocks Paying 4%+ Yield in 2025.

While we acknowledge the potential of EIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.