Market Overview

UPDATE: Deutsche Bank Downgrades Consolidated Edison


Deutsche Bank downgraded Consolidated Edison, Inc. (NYSE: ED) Wednesday from Hold to Sell.

Analysts led by Jonathan Arnold saw “more significant downside potential in ED stock than others” in the firm’s coverage. Arnold cited four reasons:

1. “ED is unlikely to fare well in a rising rate environment as a low risk, low growth, bond-proxy regulated utility.”

2. “ED’s largest utility is expected to file for new rates in February at a time when ROEs in the state are under pressure as a result of NY’s formula for setting utility investment returns, which relies on the dividend discount and capital asset pricing models. Lower returns would challenge ED’s earnings growth in 2016 and beyond.”

3. “NY regulators are undertaking an important review of the regulatory construct in the state, with a goal toward encouraging more energy efficiency, customer choice, and distributed would appear the initiative could be negative for NY utilities by discouraging incremental capital investment and rate base growth.”

4. “The National Transportation Safety Board has yet to complete its review of the March 2014 Harlem building explosion, which was traced to a leak in ED’s gas distribution infrastructure. We have no special insight into the ongoing NTSB investigation, as all involved parties have been prohibited from commenting on the proceeding, but it clearly remains an outstanding risk for the company, with a review by the NY PSC likely to follow.”

Consolidated Edison recently traded at $64.04, down 0.16 percent.

Latest Ratings for ED

Jan 2021RBC CapitalMaintainsSector Perform
Jan 2021Evercore ISI GroupDowngradesIn-LineUnderperform
Jan 2021Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for ED
View the Latest Analyst Ratings


Related Articles (ED)

View Comments and Join the Discussion!

Posted-In: Deutsche Bank Jonathan ArnoldAnalyst Color Downgrades Analyst Ratings

Latest Ratings

AEORBC CapitalUpgrades30.0
IMAXGoldman SachsDowngrades17.9
MGNITruist SecuritiesDowngrades37.0
GLUUGoldman SachsDowngrades10.4
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at