Seeking Alpha

Con Ed drifts lower on Argus downgrade

  • 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.
Comments (3)
  • al roman
    , contributor
    Comments (4923) | Send Message
    ED is one of the best companies in the world,They are the power supplier's for New York City.ED not only has the problems of keeping Quality at a constant,but also have to deal with some pretty poisonous
    politics.Utilities & their share holders seem to be calm and aware with long memories.The security and trust are comparable to a CD or treasury.ED is a good partner for keeping ahead of inflation and other cost such as Insurances.I find that Utilities have been the best investment factor in offsetting liabilities.
    The inside of the House was painted all from Utility coupon,myself materials and one worker a Veteran.
    22 Nov 2013, 06:48 AM Reply Like
  • al roman
    , contributor
    Comments (4923) | Send Message
    *SA the above mention,now overtime and coupon,it can be done.
    5 Dec 2013, 11:59 AM Reply Like
  • ob-wan
    , contributor
    Comment (1) | Send Message
    Unlike other utilities with nuclear plants ,ED doesn't have any spent rod time-bombs in the attic. Dividends are nice, too.
    22 Nov 2013, 01:55 PM Reply Like
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