In a report released yesterday, Ross Fowler from Bank of America Securities maintained a Sell rating on Consolidated Edison, with a price target of $96.00.
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Ross Fowler’s rating is based on several factors that suggest a cautious outlook for Consolidated Edison. The company recently decided to sell its 6.6% stake in the Mountain Valley Pipeline, which was considered a non-core asset, for $357.5 million. Although this sale is at a modest premium to the estimated rate base, it highlights the company’s need to address its equity requirements, specifically the $1.85 billion needed by 2026. This strategic move indicates potential financial constraints and a focus on reallocating resources.
Furthermore, Consolidated Edison is currently undergoing a settlement review process for its electric and gas Joint Proposal with the New York Public Service Commission. The outcome of this process, which includes an evidentiary hearing and subsequent deliberations, could impact the company’s future rate structures and financial performance. The uncertainty surrounding the regulatory approval timeline and the potential implications of the new rates contribute to the cautious stance. These factors combined lead to the maintenance of an Underperform rating for the stock.
In another report released on November 20, Morgan Stanley also maintained a Sell rating on the stock with a $98.00 price target.