UPDATE: Jefferies Downgrades Consolidated Edison Following Inability To Reach Settlement
In a report published Thursday, Jefferies analyst Paul Fremont downgraded Consolidated Edison (NYSE: ED) from a Hold rating to an Underperform rating and lowered the price target from $60.00 to $49.00.
In the report, Jefferies says "We are downgrading Con Ed to Underperform from Hold based on our belief that the company is unable to reach a settlement in its current electric, gas and steam rate case and receives a one-year litigated decision predicated on a 9.0% ROE. Additionally we believe the company will file for a new rate plan in February 2014 which will cause further regulatory overhang on the stock as the utility goes through its second filing in as many years."
Consolidated Edison closed on Wednesday at $56.94.
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