Hawaiian electrical industries
fell 41% Monday as the Maui wildfires weighed on the company’s stock.
In a report, Wells Fargo maintained an underweight rating for Hawaiian Electric stock (ticker: HE) and lowered its price target from $35 to $25, 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 pointing at Hawaiian Electric, as we feared, including for not instituting public safety shutdowns,” the Wells Fargo analysts wrote in a study summary.
Hawaiian Electric did not immediately respond to a request for comment from from Baron.
“The utility company’s insurance will provide some protection, but HE has not disclosed deductibles or limits,” analysts added.
Bloomberg reported Monday that plaintiffs’ attorneys are targeting the company’s equipment as a possible source of the fire and plan to file lawsuits this week.
The stock plummeted 41% to $19.23. This year they are down 54%.
Write to Emily Dattilo at [email protected]