Consolidated Edison, Inc. (NYSE:ED is among the 13 Best Electrical Infrastructure Stocks to Invest In. Sophie Karp, an analyst at KeyBanc, maintained her Overweight rating but reduced the price target for Consolidated Edison, Inc. (NYSE:ED) from $90 to $88.
Aerial view of transmission and distribution substations providing electricity to residential and commercial customers.
The firm admitted that earlier in the year, when wider narratives about power demand were under pressure, the company’s low-risk, “wires-only” utility profile supported the stock. However, KeyBanc now expects a reversal of that trade, which might result in margin compression, as investor risk appetite has improved.
KeyBanc believes that the ongoing CECONY rate cases, where bill pressure is a significant concern, will continue to put pressure on valuation, even though the stock is selling at a discount to its peers. The firm also stated that the company’s future upside is expected to be constrained by a challenging political environment in New York and limited growth opportunities. Despite being essentially solid, these trends imply that Consolidated Edison, Inc. (NYSE:ED) may see ongoing challenges shortly. It is among the Best Electrical Equipment Stocks
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