12:05 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Q1 EPS of $1.13 vs. $1.09, $0.02 above consensus, grew on higher customer rates but fell on higher interest expense and operations and maintenance costs. Our 12-month target remains at $77, 15.6x our 2024 EPS estimate (down $0.08 to $4.94; we keep our 2025 estimate at $5.63), above EIX's historical average but a discount to peers to reflect risks from substantial financial liabilities from wildfires and mudslides dating back to 2017-2018 (EIX's best estimate adjusted upward by $490M to $9.9B), as well as regulatory risk given the pending multiyear rate case. While we see trends in the California regulatory environment as favorable for EIX and peers, our downgrade primarily reflects our view that the recent valuation appropriately balances both EIX's regulatory risks as well as its competitive EPS and dividend growth expectations. Recent testimony in the multiyear rate case saw opponents forecast lower power demand, vs. EIX's projections, due to weaker EV adoption within EIX's service territory.