Wells downgrades Edison International, recommends swap into PG&E

Wells Fargo analyst Neil Kalton downgraded Edison International (EIX) to Equal Weight from Overweight with a price target of $73, down from $76. The analyst cites valuation for the downgrade following the recent rally. While Edison’s wildfire risk appears to be diminishing, Wells continues to embed a "healthy amount" of future liability risk in its valuation. The firm also sees a more difficult path than expected to achieve the company’s 2025 earnings per share guidance range of $5.50-$5.90 due, in large part, to its interest rate exposure along with the still uncertain final liability amount. It recommends swapping into shares of PG&E (PCG).