Rubber Meets the Road Into the August Outcome: Downgrade to Equal Weight

Research evidence excerpt

Rubber Meets the Road Into the August Outcome: Downgrade to Equal Weight

2 Week range USD 81.62-51.01

possibility that EIX's capital and growth outlook could evolve following the legislative outcome.

With EIX the best-performing California utility stock YTD, and uncertainty increasing around

both estimate revisions and what constitutes an acceptable Phase 2 outcome, we believe an

Equal Weight rating is now appropriate. We lower our price target to $75/share from $78/share.

EIX is the best-performing stock in our coverage this year: Edison is up 31% year-to-date as

of 7/30/26 close, well above the XLU's 5% gain. In another comparison, California peer PCG is

only up 11% over this time period. We believe this is because of: 1) EIX's attractive dividend yield Source: LSEG Data & Analytics, Bloomberg

Link to Barclays Live for interactive charting

of 4.5%, which is still the highest among large cap peers (3.2%) despite the strong stock

performance. Edison's dividend yield also compares to PCG's 1.1%.; 2) Investor positioning. We

think investors broadly went into this year underweight EIX and more overweight PCG and other North America Power & Utilities

names in the sector given that EIX has indicated that its equipment likely started the Eaton Fire. Nicholas Campanella

Thus, EIX has rallied more than peers on the hopes for constructive SB254 Phase 2 wildfire +1 212 526 6123

nicholas.campanella@barclays.comlegislation; 3) Edison had previously indicated that its financial plan will be unchanged

BCI, US

regardless of the legislative outcome this year, while PCG has injected uncertainty to its plan,

saying it could revisit its capital program if a positive outcome is not achieved by August 31st Michael Lonegan

+1 212 526 8462

michael.lonegan1@barclays.com

Barclays Capital Inc.