Edison International (EIX) sees continued uncertainty amid elevated wildfire risks and no policy clarity for another year, as California SB 492 falls short of expectations, BofA Securities said in a Tuesday note.

For the company, SB 492 does not limit insurance subrogation, cap utility liabilities, reform inverse condemnation, or provide a durable solution for Wildfire Fund funding and affordability, according to the note.

The legislation addresses many consumer-focused priorities and largely retains the existing framework, potentially pushing the debate around broader reforms into 2027, when a new governor and legislature would need to revisit these issues, BofA said.

BofA downgraded the company's stock to neutral from buy and lowered its price target to $51 from $81.

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