KeyBanc analyst Sophie Karp lowered the firm’s price target on Consolidated Edison (ED) to $88 from $90 and keeps an Overweight rating on the shares. The firm believes Consolidated Edison benefited from its “wires-only” characteristics and lower risk profile while the power demand thesis was being shaken earlier this year. KeyBanc expects this trade will reverse as investors’ risk appetite returns, resulting in further margin compression for the shares. Further, the company is amid its CECONY rate cases, where bill pressure remains top of mind. Even though Consolidated Edison is currently trading at a discount to peers, the firm believes that the valuation will likely remain pressured by the negative political backdrop in NY with limited growth opportunities.
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