Edison updated fire disclosure slight negative, says Citi

Citi says Edison International’s (EIX) updated Eaton disclosure preliminarily suggests that Southern California Edison’s transmission equipment likely caused the fire’s ignition. “While not a huge surprise, we view this update slightly negatively,” the analyst tells investors in a research note. Although Edison’s investigation is ongoing and it hasn’t concluded that its equipment caused the fire, it is not aware of evidence pointing to another source of ignition, which led it to conclude that material loss is “probable,” Citi points out. The firm keeps a Buy rating on Edison with an $86 price target The stock in morning trading is down 8% to $54.30.