Judge preserves Eaton Fire claims against Southern California Edison (EIX:NYSE)

HSBC initiated coverage on Edison International (EIX) with a Hold rating and a $56.50 price target. The stock trades at $57.19, below InvestingPro’s Fair Value estimate. HSBC cited below-peer growth rates and high risk due to California’s wildfire risks. Edison plans $38B-$41B in 2026-30 investments, with 12% for wildfire management. Other analysts have mixed views, with some downgrading due to wildfire liabilities and legislative uncertainty.

Goldman Sachs lowered its price target for Edison International from $77 to $67. The stock is currently trading at $55.44, down 0.07% on the day but up 1.89% over the year. The adjustment follows a court ruling that narrowed fire claims against the company's Palisades plant.

Edison International (EIX) may face $4B-$20B in wildfire liabilities. A lawsuit alleges its risk model was flawed, contributing to the Eaton Fire. The potential exposure depends on court findings of misconduct or negligence.

Edison International shares dropped 3% after Muddy Waters alleged willful misconduct in the Eaton Fire, potentially exposing the company to $4B-$20B in damages. The short seller claims Edison knew about deficiencies in its wildfire risk model for five years. Edison denies wrongdoing and is cooperating with investigations.

The US battery storage market grew to 52 GW by June 2026, with 8.3 GW added in the first half. Key projects include Nova Power Bank (680 MW), Crimson (350 MW), Nighthawk (300 MW), Cormorant (250 MW), and Bellefield (1,000 MW). These projects highlight different approaches to battery storage, including utility contracts, corporate power agreements, and financing structures.

Jefferies downgraded Edison International (EIX) to Underperform, lowering its price target to $42 from $53 due to fire liability concerns and reduced prospects for legislative relief. The stock has fallen 25% in six months, trading near its 52-week low. Other analysts, including UBS, Fitch Ratings, BofA Securities, and Mizuho, have also lowered price targets or ratings, citing similar concerns.