Con Ed drifts lower on Argus downgrade

|By:, SA News Editor

Consolidated Edison (ED -1.6%) is downgraded to Hold from Buy at Argus based on valuation and the firm's expectations for an upcoming unfavorable rate case decision from the New York Public Service Commission, which is seen as unlikely to approve ED's request for an allowed ROE of 10.1%.

The firm's long-term rating on ED remains a Buy, as it likes the strong financial position, limited risk profile and visible earnings stream will continue to provide stable returns for shareholders; shares also offer an attractive 4.2% dividend yield, above the industry average.