On Wednesday, Jefferies reported that it has downgraded energy company Consolidated Edison, Inc. (ED) to “Hold.”
The firm has cut its rating on ED from “Buy” to “Hold,” and has slashed its price target from $67 to $58. This price target suggests a 4% upside from the stock’s current price of $55.90.
Analyst Paul B. Fremont noted: “We are downgrading Con Edison to Hold from Buy due to lower estimates that are predicated on a reduction in retail margins at the company’s unregulated business (Con Ed Solutions).”
“Additionally we believe parties involved in the current electric, gas and steam rate filing will be unable to reach a settlement agreement, which could put further downward pressure on the company’s earnings,” added the analyst.
Looking ahead, analysts have lowered third quarter earnings estimates on ED from $1.45 to $1.35 per share. For FY2013, estimates have been cut from $3.80 to $3.65 per share. FY2014 estimates have been reduced from $3.90 to $3.75 per share.
Consolidated Edison shares were down 40 cents, or 0.72%, during pre-market trading Wednesday. The stock has been mostly flat YTD.
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