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On Monday, BofA Securities analyst Julien Dumoulin-Smith adjusted the price target for Consolidated Edison (NYSE:ED) shares, increasing it to $113.00 from the previous $102.00. The firm maintained its Buy rating for the utility company’s stock. The new target comes as ED trades near its 52-week high of $107.97, having delivered an impressive 20.32% return year-to-date, according to InvestingPro data.
Dumoulin-Smith reiterated the Buy rating on Consolidated Edison, citing consistency in the earnings per share (EPS) estimates for the years 2025 through 2027. These estimates stand at $5.63, $6.03, and $6.33 per share, respectively, aligning with the consensus of $5.63, $5.98, and $6.29 per share. The analyst’s projections are also within the upper half of Consolidated Edison’s own 2025 guidance range of $5.50 to $5.70 per share and support the company’s EPS growth guidance of 6%-7% through 2029. With a current P/E ratio of 20.11x and a solid Financial Health Score of "GOOD" from InvestingPro, the company demonstrates strong fundamental positioning.
The decision to raise the price target to $113 reflects an updated peer group price-to-earnings (P/E) multiple and valuation assessment. Despite ongoing monitoring of Consolidated Edison’s rate case proceeding in New York, the analyst believes that the company’s solid track record, consistent earnings, and regulated business model justify a valuation premium.
Consolidated Edison, which operates as one of the largest investor-owned energy companies in the United States with a market capitalization of $36.89 billion, is known for its stable financial performance and regulated utility operations. The company’s focus on delivering consistent service to its customers is a cornerstone of its business strategy. InvestingPro data reveals an impressive 50-year streak of consecutive dividend increases, with a current dividend yield of 3.2%, highlighting the company’s commitment to shareholder returns.
Investors and market watchers will continue to observe Consolidated Edison’s progress in the rate case proceedings, as regulatory outcomes can have significant impacts on utility companies. Nevertheless, the current assessment by BofA Securities suggests confidence in the company’s ability to maintain its growth trajectory and deliver value to its shareholders.
In other recent news, Consolidated Edison reported fourth-quarter earnings that exceeded analyst expectations, posting adjusted earnings per share of $0.98, surpassing the consensus estimate of $0.95. The company’s revenue for the quarter was $3.67 billion, also beating the forecast of $3.59 billion and showing a 2.2% increase year-over-year. For the full year 2024, Con Edison reported adjusted earnings of $5.40 per share, up from $5.07 in 2023. The company has provided guidance for fiscal year 2025, projecting adjusted earnings per share in the range of $5.50 to $5.70, aligning closely with the analyst consensus of $5.63.
Additionally, Con Edison entered into an agreement with Barclays (LON:BARC) Capital Inc. for the sale of 6.3 million common shares, as detailed in a recent SEC filing. This move is part of the company’s ongoing financial activities, though the specific use of proceeds from the sale has not been disclosed. In analyst updates, Jefferies increased its price target for Con Edison to $113, maintaining a Hold rating, while Evercore ISI raised its target to $107, keeping an In Line rating. Both firms highlighted the company’s earnings potential and financial strategy as reasons for their revised outlooks. Con Edison also announced a significant expansion of its five-year capital plan, adding $10 billion, which represents a 35% increase over previous figures.
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