EIX Edison International

By Patrick Thomas

Shares of Edison International (EIX) are down more than 11% to $64.07 on Friday, a day after the Tick fire began spreading just north of Los Angeles, near the Santa Clarita Valley.

Southern California Edison, a subsidiary of Edison International, recently shut off electricity as a preventive measure for nearly 30,000 customers, The Wall Street Journal previously reported. More than 350,000 of its customers are under consideration of intentional blackouts, depending on wind conditions.

SunTrust Robinson Humphrey analysts noted that there has been no determination yet on the cause of these fires and said the "knee jerk" stock reaction to the Southern California fires is overdone.

"A $2.4 billion reduction in market cap (based on the stock pullback today) is totally disproportionate to the implied worst case fire liability scenario, in our view," the analysts said. "Even in the worst case scenario, we calculate that the total liability created by the current fires is approximately $435 million (which can be fully covered by insurance)."

Write to Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

October 25, 2019 11:54 ET (15:54 GMT)

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