Consolidated Edison: Hold Rating Amid Regulatory Challenges and Competitive Risks

Consolidated Edison (ED) has received a new Hold rating, initiated by Evercore ISI analyst, Nicholas Amicucci.

Nicholas Amicucci has given his Hold rating due to a combination of factors influencing Consolidated Edison’s current and future performance. One of the primary considerations is the challenging regulatory environment in New York, where political opposition to rate hikes could impact the company’s ability to meet its earnings growth targets. The upcoming NYC mayoral election adds further uncertainty to the regulatory landscape, making it difficult for ConEd to confidently pursue its financial goals.
Additionally, the potential re-commissioning of the Indian Point nuclear facility presents a risk to ConEd’s earnings potential. Although increasing generation capacity is necessary for the region, the restart of Indian Point would not benefit ConEd financially and could instead pose a competitive threat. Despite these challenges, ConEd’s strong balance sheet and predictable revenue streams are positive factors, but they are not enough to warrant a more favorable rating at this time.

In another report released on October 2, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $106.00 price target.