Mizuho raised its price target on Consolidated Edison (NYSE:ED) to $118 from $112 on Monday and maintained an Outperform rating, citing the combination of recent earnings strength, regulatory clarity and reduced equity needs.
The utility posted 2025 earnings per share of $5.70, above the Street consensus of $5.66. Management initiated 2026 earnings guidance of $6.00 to $6.20 per share - a range that compares with consensus estimates of $6.03 and Mizuho’s own $6.10 forecast. Mizuho noted a long-term earnings-per-share compound annual growth rate of 6% to 7%, measured off the midpoint of the 2026 guidance.
Dividend policy remained a highlighted feature of the company’s profile. According to InvestingPro, Consolidated Edison has increased its dividend for 51 consecutive years and currently yields 3.23% on a trailing basis. In related company disclosures cited by analysts, Consolidated Edison also declared a quarterly dividend of $0.8875 per share, described as its 52nd consecutive annual dividend increase and the longest streak among utilities in the S&P 500.
Regulatory developments have helped reduce a key source of uncertainty. The company’s three-year electric and gas rate filing received unanimous approval in January from the New York Public Service Commission, which granted a 9.4% return on equity and, in Mizuho’s view, eased regulatory overhang for the next three years. Over the past four years, Consolidated Edison has reported results above its guidance range, a record analysts highlighted when assessing the company’s near-term stability.
On the capital side, management outlined expected capital expenditures of $6.595 billion in 2026 and $6.795 billion in 2027. At the same time, Consolidated Edison indicated equity needs of up to $1.1 billion, a downward revision from a prior projection of $1.85 billion. Mizuho cited the reduced equity requirement as a factor supporting the stock’s attractiveness relative to peers.
Valuation remains a point of debate. The shares trade at a price-to-earnings ratio of 19.47, and Mizuho described the stock as appealing at a group-average multiple with limited regulatory headwind. However, InvestingPro analysis cited in the brokerage note suggests the shares are overvalued relative to InvestingPro’s Fair Value assessment, highlighting a divergence between market multiples and some valuation models.
Other firms also updated their views in light of the results. Scotiabank raised its price target to $117 after Consolidated Edison reported fourth-quarter 2025 EPS of $0.89, which topped both Scotiabank’s estimate and consensus expectations. Barclays adjusted its target to $110, noting recent earnings performance and the updated guidance. BofA Securities increased its target to $99 following the New York Public Service Commission’s approval of the 2026-2028 electric and gas rate plan.
Management said the company reached the high end of its 2025 EPS guidance, with roughly $50 million of earnings adjustment mechanisms contributing to the $5.70 result. Analysts cited that detail as part of the rationale for several broker target increases.
Implications for markets and sectors: The company’s updates and subsequent analyst actions touch utilities and energy infrastructure sectors directly and have implications for equity investors and fixed-income holders who watch dividend stability and capital plans closely.