UPDATE: KeyBanc Downgrades Consolidated Edison (ED) to Underweight

(Updated - July 20, 2021 4:28 AM EDT)

KeyBanc analyst Sophie Karp downgraded Consolidated Edison (NYSE: ED) from Sector Weight to Underweight 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, unfriendly business climate and particular animosity toward utilities, and a long history of below average regulatory outcomes. The company is currently operating under a multiyear plan, limiting its ability to address COVID-related revenue shortfalls. After raising ~$700M in equity in 2021, ED will need ~$700M more to fund its 2021-2022 capex, creating persistent equity overhang. Given this makeup and limited upside potential or catalysts, we believe that ED presents an attractive source of funds on a relative basis. Even though the company is currently trading at a discount to peers, we believe that the valuation will remain pressured by the negative political backdrop in NY and impending equity raise."

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 $73.77 yesterday.

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