Market Overview

Goldman Sachs Downgrades Consolidated Edison Despite Positive View On Utilities


Consolidated Edison, Inc’s (NYSE: ED) stock does not reflect the risk to consensus and guidance for yearend and 2021 from elevated COVID-19-related costs, according to Goldman Sachs.

The Consolidated Edison Analyst: Insoo Kim downgraded Consolidated Edison from Neutral to Sell, while reducing the price target from $86 to $78.

The Consolidated Edison Thesis: Consolidated Edison’s New York utility, which comprises almost 90% of the company’s earnings in 2021, could continue experiencing a negative cash impact, Kim said in the note.

He explained that the “potential COVID-19 related cash impact from increasing aged receivables/bad debt, lost customers, and non-collection of late fees could increase financing needs and ultimately weigh on earnings power.”

“Our analysis points to potential for over $1bn of cash drag in 2H2020-2021, leading to 2%-4% of EPS impact from elevated debt/equity financing,” the analyst wrote.

Kim added, however, that Utilities are viewed “as relative winners from potential tax reform, while the inflation impact should be manageable based on our GS strategist’s forecast of a 2% near-to-medium term level.”

ED Price Action: Shares of Consolidated Edison had risen by 0.56% to $81.26 at the time of publication Tuesday.

Latest Ratings for ED

Nov 2020Morgan StanleyMaintainsUnderweight
Nov 2020Credit SuisseMaintainsNeutral
Nov 2020Credit SuisseMaintainsNeutral

View More Analyst Ratings for ED
View the Latest Analyst Ratings


Related Articles (ED)

View Comments and Join the Discussion!

Posted-In: Goldman Sachs Insoo KimAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

CAMTStifelInitiates Coverage On19.0
ELMDNorthland Capital MarketsInitiates Coverage On15.0
DKNGUBSInitiates Coverage On52.0
DIODTruist SecuritiesInitiates Coverage On84.0
TGTArgus ResearchUpgrades205.0
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