KeyBanc retrograde Edison (ED) underweight
Best StreetInsider.com tickers, 07/20/2021
(Update – July 20, 2021 4:28 a.m. EDT)
KeyBanc analyst Sophie Karp downgraded Consolidated Edison (NYSE: ED) from sector weighting to underweighting with a price target of $ 66.00.
The analyst comments, “ED is a slow growing utility that operates in mature jurisdictions (NYC / NYS) characterized by flat to negative population growth, a hostile business climate and particular animosity towards utilities, and a long history of below-average regulatory results. The company is currently operating under a multi-year plan, which limits its ability to cope with COVID-related revenue shortfalls. After raising roughly $ 700 million in equity in 2021, ED will need about $ 700 million more to fund its capital spending for 2021-2022, creating a persistent equity surplus. With this mix and limited upside potential or catalysts, we believe ED presents an attractive source of funds on a relative basis. Although the company is currently trading at a discount to its peers, we believe the valuation will remain under pressure from the negative political backdrop in New York and an impending capital increase. “
For a summary of analyst ratings and rating history on Consolidated Edison, click here. For more information on Consolidated Edison valuations, click here.
Shares of Consolidated Edison closed at $ 73.77 yesterday.
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