Aug. 15 at 1:57 PM
Bank of America Downgrades Consolidated Edison to Underperform
Bank of America downgraded Consolidated Edison from Buy to Underperform and cut its 12-month price target from
$112 to
$101, citing regulatory challenges and affordability pressures in New York.
The downgrade follows the company’s rate case proposal, which sought an 18% revenue increase. PSC staff recommended smaller hikes, emphasizing affordability. BofA lowered EPS estimates for 2025–2027 to
$5.60,
$6.01, and
$6.31, with a long-term CAGR of 5.7%, and applied a 10% discount to its regulated electric, gas, and steam businesses.
While Con Edison benefits from stable earnings and a strong balance sheet, BofA calls the 8.2% target rate base CAGR through 2029 “ambitious.” Its transmission unit, Con Edison Transmission (CET), retains a 20% premium for FERC-regulated cash flows, though downside risks persist.
$ED $BAC