Mizuho Cuts Consolidated Edison (ED) to Neutral on Growth and Valuation Concerns

With a 5-Year Average Dividend Growth Rate of 2.44%, Consolidated Edison, Inc. (NYSE:ED) is included among the Top 11 Dividend Kings to Buy for Safe Dividend Growth.

On June 2, Mizuho downgraded Consolidated Edison, Inc. (NYSE:ED) to Neutral from Outperform. It set a a $105 price target. The firm cited the company’s “constrained growth trajectory” and valuation as reasons for the downgrade. According to Mizuho, Consolidated Edison’s valuation discount relative to its peers is no longer compelling. The analyst noted in a research report that this leaves limited upside potential from current share price levels.

Earlier, on May 21, Morgan Stanley lowered its price recommendation on ED to $99 from $105. It reiterated an Underweight rating on the stock. The firm updated its price targets for North American Regulated & Diversified Utilities and Independent Power Producers (IPPs) for April. Morgan Stanley also pointed out that utility stocks underperformed the S&P this month, according to the analyst’s note to investors.

Consolidated Edison, Inc. (NYSE:ED) is a holding company that provides a range of energy-related products and services through its subsidiaries. These include Consolidated Edison Company of New York, Inc. (CECONY), Orange and Rockland Utilities, Inc. (O&R), and Con Edison Transmission, Inc.

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