11 Most Undervalued Utility Stocks to Buy Now

6. Edison International (NYSE:EIX)

Forward P/E: 11.48

On February 26, Goldman Sachs raised the firm’s price target on Edison International (EIX) to $77 from $64 and maintained a Neutral rating on the shares. This quarter, Edison International extended its 5%-7% EPS compound annual growth rate target through 2030, enhancing long-term visibility underpinned by its capital plan and no incremental equity needs, though the outlook trails peers and is weighed by wildfire reform uncertainty and ongoing Eaton Fire litigation, the analyst tells investors in a research note. The inability to quantify potential fire-related losses remains an overhang, making progress on the SB 254 legislative process the key catalyst to de-risk the story and improve the long-term risk profile, the firm says.

Similarly, on February 20, Morgan Stanley raised the firm’s price target on Edison International (EIX) to $68 from $61 and maintained an Underweight rating on the shares. Morgan Stanley notes that utilities underperformed the S&P’s return this month. Previewing Q4 earnings, the firm expects some balance in the discussion of data center pipelines given increased affordability and political concerns.

Founded in 1886, Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison and unregulated non-utility business assets: Edison Energy.