UPDATE: Credit Suisse Downgrades Consolidated Edison (ED) to Underperform

February 22, 2021 4:32 AM EST
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Price: $75.17 +0.07%

Rating Summary:
    0 Buy, 10 Hold, 7 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 42
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(Updated - February 22, 2021 4:58 AM EST)

Credit Suisse analyst Michael Weinstein downgraded Consolidated Edison (NYSE: ED) from Neutral to Underperform with a price target of $65.00 (from $75.00).

The analyst comments "We see continued COVID19 cost impact as worse than expected, lasting well into 2021. Furthermore, the company’s projected 4%-6% EPS growth rate is now below large-cap peers despite starting at a low 2021 base $4.25. ED’s 3-year regulatory settlement continues to be a burden on the utility which requires achievement of significant and escalating opex savings simply to achieve an 8.8% authorized ROE that is also well below the national average. We remain concerned regarding NY regulatory treatment of a future recovery request for COVID19 costs and a growing bad debt reserve. ED is considering strategic alternatives for its slow/no-growth midstream segment (50% of Stagecoach) following a pre-tax impairment loss of $320M ($223M after tax) for its interest in the Mountain Valley Pipeline."

For an analyst ratings summary and ratings history on Consolidated Edison click here. For more ratings news on Consolidated Edison click here.

Shares of Consolidated Edison closed at $68.18 yesterday.


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