Hawaiian Electric Industries
was plunging on Monday as the wildfires in Maui weighed on the company’s stock.
Wells Fargo maintained an Underweight rating on Hawaiian Electric stock (ticker: HE) in a report, and lowered the price target to $25 from $35, citing wildfire risks. The company supplies power to the vast majority of the state’s population, according to The Wall Street Journal.
“And while the exact cause of the fire has yet to be determined, some fingers … are already being pointed towards Hawaiian Electric, as we feared, including for not instituting public safety power shutoffs,” the Wells Fargo analysts wrote in a research summary.
Hawaiian Electric didn’t immediately respond to a request for comment from Barron’s.
“The utility’s insurance will provide some protection but HE has not disclosed the deductibles or limits,” analysts added.
Bloomberg reported Monday that plaintiffs attorneys are focusing on the company’s equipment as a possible source of the fire and plan to file lawsuits this week.
The stock was tumbling 37% to $20.57. This year, they have dropped 51%.
Write to Emily Dattilo at [email protected]
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