27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Although Consolidated Edison, Inc. (NYSE: ED) is a “simple, regulated story,” backed by a strong management team, Citi’s Praful Mehta said in a report. He initiated coverage of the company with a Neutral rating and a price target of $76.
Regulated Story
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The valuation of Consolidated Edison’s regulated business is expected to grow ~3.5 percent after 2019. The strong management team has “strategic clarity” and is focusing on the company’s regulated or contracted operations, Mehta commented.
“The move away from merchant operations and into the more contracted renewables and transmission businesses supports the contracted business model while expanding on potential growth avenues,” the analyst wrote.
Limited Growth At Utilities
Peak electric usage growth from 2016 to 2020 is expected to remain below 0.5 percent. Low load growth would limit growth at utilities, which is estimated at ~4 percent through 2019.
Consolidated Edison develops long-term contracted solar and wind projects and there are plans to invest ~$2 billion over the next three years. “While we like its growth potential, renewables is a small part of the story for now and adds $5/share of value,” Mehta mentioned.
Electric and Gas transmission appear to be “the most sustainable growth drivers” for utilities and the business is valued at $6 per share.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.