The bullish firms have a bullish stance as they believe that the utility offers one of the best growth profiles with a strong management team but is overshadowed by EME's concerns.  According to these firms, EIX represents an attractive play on the politically driven build-out of renewables and smart-grid infrastructure in California, which will likely translate into one of the highest growth rates for regulated utilities in the universe, at around 10.0% over the middle term though at a lesser rate at the parent due to declining EPS contribution from the unregulated side.  According to these firms, the current valuation continues to under-value the regulated segment and implies a negative value for EMG. The firms believe there is limited downside remaining at the merchant business, but significant potential upside as commodity markets begin to improve.  The firms are optimistic as they see a strong and visible ramp in SCE’s earnings over the next several years based on a supportive regulatory environment and significant capital expenditure program.