UPDATE: Morgan Stanley Reiterates on Edison International Following Settlement Agreement

Benzinga

In a report published Friday, Morgan Stanley analyst Rajeev Lalwani reiterated an Overweight rating on Edison International (NYSE: EIX), but removed the $58.00 price target.

In the report, Morgan Stanley noted, “After the close yesterday EIX announced a settlement related to its retired nuclear facility (SONGS), a key overhang for shares and impediment to reaching a premium valuation, in our view. We view the agreement as balanced since it provides certainty, a slight uplift in EPS, modest additional write-offs, and recovery of a majority of its investment.

"In addition, there is upside for shareholders in the event the company receives funds from insurance and/or Mitsubishi. We expect an ultimate Commission approval in the coming months and do not foresee an onerous process given supportive commentary following settlement announcement.”

Edison International closed on Thursday at $53.89.

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