Edison International (EIX) reaffirmed 2008 GAAP and core earnings guidance within the range of $3.61 to $4.01 per share. Within this range, Southern California Edison (SCE) and Edison Mission Group (EMG) are expected to be between $2.18 to $2.28 and $1.57 to $1.87 per share, respectively, while the parent company EIX and Other segment is expected to register a loss of $0.14 per share in 2008.

Several issues that previously reduced visibility of the company's long-term prospects have been resolved. These factors include the favorable decision on SCE's general rate case in California and the positive outlook for Edison Mission Energy (EME) following the resolution of its liquidity issues, combined with an improving operating outlook. The resulting positive earnings momentum due to these factors, in our view, will help promote EIX's equity value.

Accordingly, we maintain our BUY recommendation on Edison International common stock with a six-month target price of $37.50. Price appreciation to our near-term valuation, coupled with the stock s $0.305 per share quarterly dividend, which we view as very sustainable and secure given low projected payouts, represents annualized total return potential of 38.4%.