Edison International (EIX) Faces Analyst Caution Amid Near-Term Risks

Edison International (NYSE:EIX) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

On February 13, Edison International (NYSE:EIX) was downgraded from Buy to Neutral by UBS, which cited the company’s valuation as the primary reason. However, the firm raised its price target by about 11% to $78 (from $70), according to a TipRanks report.

UBS stated that Edison’s share price has appreciated by around 21% over the last six months, outperforming the Dow Jones Utility Index, which rose a mere 1% during the same period. This outperformance leaves little upside based on the firm’s estimates and is not sufficient to support a Buy rating; thus, UBS has stepped to the sidelines.

This report also notes that UBS believes the risk/reward is balanced in the near term. The analysts argue that the potential resolution of the Eaton fire liability is supportive, but the Phase 2 wildfire legislation would still take around six months, which would weigh on the share price in the near term. Moreover, the upcoming California gubernatorial election poses policy and regulatory risks, according to UBS.

After a strong rally since 2020, the share price peaked in late 2024 at around $88 and nearly halved by mid-2025. It closed 2025 down 25% but has partially recovered since the start of 2026, with gains of 23% so far.

The broader analyst consensus is cautious on Edison International (NYSE:EIX), with more analysts assigning a Hold or Sell rating (53%) than a Buy (47%). Based on these analysts’ estimates, the 1-year median price target of $73 implies a 1% downside.

Edison International (NYSE:EIX) is a public utility holding company that, through its subsidiaries, generates and distributes electric power. Its subsidiary Southern California Edison delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users.

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. This article is originally published at Insider Monkey.