Hawaiian Electric Industries (HE) experienced a significant decline in their stock value on Monday due to the devastating wildfires in Maui. The company, which is responsible for supplying power to the majority of Hawaii’s population, saw its stock rating downgraded by Wells Fargo. The report also mentioned that the price target had been lowered from $35 to $25, primarily due to the risks associated with the wildfires.
Investigations into the cause of the fire are still ongoing, but Wells Fargo analysts expressed concerns about Hawaiian Electric’s failure to implement public safety power shutoffs. The analysts acknowledged that the utility company has insurance in place but stated that the deductibles and limits have not been disclosed.
Plaintiffs attorneys are reportedly focusing on Hawaiian Electric’s equipment as a potential source of the fire, with plans to file lawsuits against the company this week. As a result of these developments, Hawaiian Electric’s stock experienced a sharp decline of 35% and currently stands at $20.91. Overall, the stock has dropped 54% this year.
