Edison International (NYSE:EIX) Gravitating to Utilities Sector

For the next couple of years it looks like Edison International's (NYSE:EIX) earnings will underperform, although heading into 2012 they should rebound some.

Barclays said, "We believe the EIX core utility Southern California Edison (SCE) is a premium business. We see a well-run utility, stable regulatory environment, 8-11% ratebase growth in California to implement state policies, and no need for equity in the near term...Our published EPS estimates include only the core regulated and parent businesses and were previously consolidated estimates. We are revising our EPS estimates to $2.90/$2.91/$3.00 from $3.53/$2.97/$2.61 for 2010-12E. Through 2014 we expect 9% EPS growth from SCE off a normalized base and significant losses from EMG."

Barclays maintains an "Equalweight" on Edison International, which closed Wednesday at $38.67, down $0.17, or 0.44 percent. Barclays has a price target on them of $40.