Why Edison International Stock Withered on Wednesday
Key Points
He maintained his neutral recommendation, however.
The stock is still reeling from recent legislative developments in its home state.
- 10 stocks we like better than Edison International ›
Still reeling from a recent regulatory setback in California, Edison International (NYSE: EIX) stock was dealt a fresh blow on Wednesday. An analyst tracking the California power utility made a deep cut to his price target; this, combined with generally gloomy sentiment on the company, drove the shares down by more than 6% on the day.
Power cut
Aidan Kelly from JPMorgan Chase's JPMorgan was the lead prognosticator behind the reduction. In a new research note, the pundit changed his Edison price target to $61 per share, well down from his previous $82. However, he maintained his neutral recommendation on the utility stock.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
According to reports, Kelly's update was due to the aforementioned setback. The California legislature ended its current regular legislative session on Monday. Crucially for Edison in particular and the state's utilities in general, it did not take a vote on the controversial California Wildfire Liability Bill, which at one point had significant liability protections for utilities.
The analyst pointed out that this leaves Edison vulnerable, as its key subsidiary, Southern California Edison, has been hit with multiple lawsuits alleging its liability in the early 2025 Eaton fire.
High vulnerability
Edison's stock fell off a cliff when the legislature wrapped its session without voting, and I'm not convinced it's hit bottom yet. That situation with the Eaton fire is potentially a massive issue for the company, and it seems as if those originally proposed protections are too politically volatile. I'd avoid this stock for now.
Should you buy stock in Edison International right now?
Before you buy stock in Edison International, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Edison International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 2, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
Recommended Articles
