Jefferies Upgrades Con Edison; "Buy" Rating (ED)

Jefferies Upgrades Con Edison; “Buy” Rating (ED)

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Jefferies reported that they have upgraded utility company, Consolidated Edison, Inc.(ED) to a “Buy” on Wednesday.

The firm has increased their rating on ED from a “Hold” to a “Buy,” and has given the company a $62 price target. This price target suggests a 10% increase from the stock’s current price of $55.57.

Analysts see the stock returning to its previous P/E premium of 5% to 15% after the company’s rate filing later this year. Although the company is trading at the industry average, ED pays above the average yield, protecting investors from a slip in the stock price.

Consolidated Edison shares were mostly flat during premarket trading Wednesday. The stock has declined -6.5% in the past year.

The Bottom Line
Shares of Con Edison (ED) have a 4.37% dividend yield, based on last night’s closing stock price of $55.34. The stock has technical support in the $52-$54 price area. If the shares can firm up, we see overhead resistance around the $58 price level.

Consolidated Edison, Inc.(ED) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.