Edison International (EIX) shares dropped 7.4% in pre‑open trading, pulling back from a 52‑week high of $81.62. By comparison, the broader U.S. equity market was largely flat, with the S&P 500 down 0.2%, the Dow Jones down 0.1% and the Nasdaq slipping 0.1%.
Analyst firms moved to downgrade the stock and reduce price expectations. Mizuho cut its rating from Outperform to Neutral, lowered its target price to $70 from $86, and simultaneously downgraded peer utility PG&E. Barclays reduced its rating to Equal‑Weight and set a $75 target, while Argus shifted to a Hold rating, citing wildfire liability risk. Morgan Stanley trimmed its target to $65.
The rating cuts are linked to stalled California wildfire‑liability reform. The state missed the August 29 legislative deadline, ultimately passing SB 492 on the session’s final day. The bill does not replenish the state wildfire fund nor break the 20% liability cap tied to the CPUC transmission and distribution rate base. Governor Newsom’s proposals to cap fund withdrawals at $6 billion per incident and to eliminate subrogation were excluded.
Edison and its subsidiary Southern California Edison have recorded $1.6 billion in losses related to the Eaton Fire settlement as of June 30 2026. Mizuho expects another reform push by 2027, though a new state administration could make progress challenging.
