EIX 3Q2017: Strong 3Q17 performance lifts guidance; Focus on 2018 GRC

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Auvila_EIX_Note_2017_3Q_Earnings_2017_10_30

Excerpt:

Market Price (10/30/2017): $79.59/share; ST-Target: $100/share; NIV: $168/share

  • Management is showing confidence by again raising 2017FY AEPS guidance this time by about $0.05
  • Waiting on PD for 2018 GRC; FD unlikely in 2017
  • Strong execution, strategic evolution and focus on core strengths makes for attractive investment
  • Strategically, we like focus on utility projects with minimal distractions
  • Renewable integration’s challenging but no big surprises, yet.
  • Dividend payout ratio has caught up to earnings power of SCE logging-in at some 51%
  • LT investments should drive LT AEPS CAGR above 7%-9% forecast range, in our opinion

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