Mizuho Upgrades Consolidated Edison to Outperform, Sees Selloff as Buying Opportunity

Mizuho upgraded Consolidated Edison (NYSE:ED) to Outperform from Neutral, raising its price target to $107 from $105, arguing that the recent weakness in shares creates an attractive entry point for a premium utility stock.

The firm noted that ED shares have underperformed the UTY index over the past three months, partly due to investor concerns following a Democratic Socialist’s victory in the NYC mayoral primary. However, Mizuho dismissed these fears as overblown, emphasizing that New York City’s political leadership has no direct influence over state utility regulators or the formulaic rate-of-return calculations that determine ED’s earnings.

Mizuho also highlighted the start of settlement talks in ED’s current electric and gas rate cases, pointing out the company’s strong track record of resolving all 14 E&G cases since 2010 through settlements, which has historically allowed it to earn its authorized return on equity.

At a 2% discount to sector peers on a forward P/E basis, the firm sees ED’s valuation as compelling, especially given its premium utility status and regulatory stability. The upgraded rating reflects Mizuho’s confidence in the company’s ability to navigate regulatory proceedings and deliver consistent earnings.