Edison International shares are now pricing in the worst-possible scenario when it comes to impact from the ongoing Los Angeles wildfires, according to investment bank Ladenburg Thalmann. Analyst Paul Fremont upgraded shares of the Southern California utility provider to neutral from sell. But Fremont cut his price target by $4.50 to $56.50, reflecting further downside of 3.3% from Tuesday’s close. Fremont’s upgrade comes as traders have dumped Edison stock in the wake of the deadly fires in the Los Angeles area. Shares have tumbled more than 22% in the new trading year, making it the worst performer in the entire S & P 500 so far in 2025. “With Edison trading at a 34% P/E discount we believe the stock reflects reasonable worst-case outcomes associated with the current California wildfires,” Fremont wrote to clients, using shorthand to reference the price-to-earnings ratio. EIX YTD mountain Edison International in 2025 CEO Pedro Pizarro on Monday told CNBC that Edison equipment showed no electrical anomalies in the hours leading up to one of the blazes. Fremont said a worst-case outcome for Edison stock requires several smaller negative resolutions to issues which he estimated should take months or years to resolve. In the meantime, the analyst decreased earnings per share estimates between 2024 and 2027, given that the lower share price creates more dilution. Shares popped nearly 6% on Wednesday, building on Tuesday’s 2% bounce. Tuesday’s gain snapped a six-day losing streak, the first negative period of that length since June.
