Ahead of the Bell: Power provider Edison Int'l
NEW YORK (AP) — An analyst on Tuesday cut shares of power provider Edison International to "Hold," saying the stock won't likely grow enough this year to warrant a "Buy" rating.
Paul Fremont of Jefferies & Co. cited uncertainty regarding a pending case on power rates, rising costs and a long-shuttered nuclear plant as major factors in the downgrade. There is no timetable to restart the California plant, called San Onofre.
He cut his earnings estimate for the quarter that ended last month by 20 cents to $1.20 per share. Analysts polled by FactSet expect $1.18 per share.
He expects the company to make up some of the shortfall in the fourth quarter, and raised his earnings forecast for the last three months of the year by 10 cents per share to $1 per share. Analysts expect 71 cents per share.
Fremont maintained his earnings forecast for the next three years. He has a price target of $51 on the stock, which would mean growth of 8 percent from Monday's close at $47.25. Shares have risen 14 percent in 2012.