Consolidated Edison price target lowered to $73 from $77 at KeyBanc

KeyBanc lowered the firm’s price target on Consolidated Edison to $73 from $77 and keeps an Underweight rating on the shares. The firm’s thesis has remained consistent as it views Consolidated Edison as a slow growing utility that operates in a mature jurisdiction characterized by flat to negative population growth, an unfriendly business climate, and a long history of below-average regulatory outcomes. While the recent CECONY rate case settlements were better than KeyBanc’s expectations, the firm believes Consolidated Edison lacks any near-term catalyst and has limited growth opportunities. Further, KeyBanc views the current premium to peers as unwarranted and that should result in pressure on the valuation given the political backdrop in NY, especially if investors seek higher growth opportunities.