BofA Maintains Cautious View on Con Edison (ED) After Rate Decision

Core Viewpoint - Consolidated Edison, Inc. (NYSE:ED) is recognized as a low-risk stock suitable for retirement portfolios, but analysts maintain a cautious outlook due to limited growth catalysts and potential downside risks compared to peers [1][2]. Financial Outlook - BofA raised the price target for Consolidated Edison to $99 from $96 while reiterating an Underperform rating, indicating a cautious stance despite the approval of a three-year rate plan [2]. - The company plans to invest approximately $72 billion over the next decade to enhance utility operations, promote cleaner energy, and improve climate resilience, which is expected to support annual earnings growth of 5% to 7% [3]. - Dividend growth is anticipated to be in the low-to-mid single digits through at least 2030, with the stock currently yielding around 3.3%, suggesting potential average annual total returns of roughly 7% or higher over time [3]. Business Model and Market Position - Consolidated Edison operates on a business model characterized by steady and predictable revenue, with resilient demand for its services [4]. - The company’s rates are regulated, allowing it to recover capital invested in maintaining and expanding its utility network, which supports its operational stability [4].