Scotiabank has increased its price target on Consolidated Edison stock (NYSE:ED) to $117 from $113 while retaining a Sector Perform recommendation. The move follows Consolidated Edison’s fourth-quarter 2025 results, which produced an earnings-per-share outcome that outpaced both Scotiabank’s internal estimate and broader consensus.
For the quarter, Consolidated Edison reported earnings per share of $0.89, above Scotiabank’s $0.88 estimate and consensus expectations of $0.86. In response to those results and the company’s outlook, Scotiabank raised its 2026 and beyond earnings estimates by approximately 4%.
The utility issued 2026 earnings guidance that exceeded expectations, and Scotiabank observed that Consolidated Edison has historically delivered actual results that meaningfully surpassed its compound annual growth rates, even though the company reiterated rather than increased its stated CAGR. On the company’s fourth-quarter performance, Scotiabank commented: "We see ED’s 4Q25 results as solid, with a strong earnings beat and a better-than-expected 2026 EPS guidance range serving as an anchor upon which future growth will be based."
Market-level valuation metrics indicate the stock trades at a price-to-earnings ratio of 19.5, with the shares quoted at $111.92 and sitting near a 52-week high of $115.25. Those same data suggest the stock appears overvalued relative to a Fair Value calculation. Income-oriented investors continue to view the company through the lens of its long dividend record: materials in the company profile note that ED has raised its dividend for 51 consecutive years and offers a yield of 3.17%.
On capital spending, the company’s update retained the same headline number as the prior outlook, and Scotiabank highlighted a quiet regulatory calendar as an operational positive. The bank said the subdued regulatory calendar shields Consolidated Edison from affordability-related headline risks in the current political environment.
Outside of Scotiabank’s note, the company also announced a quarterly dividend of $0.8875 per share, which the company has characterized as the 52nd consecutive annual increase in dividends. That quarterly payout annualizes to $3.55 per share, an increase of $0.15 from the previous annualized dividend of $3.40 per share.
Other broker-dealer actions arrived in short order. BofA Securities raised its price target to $99 following approval of a three-year electric and gas rate plan by the New York Public Service Commission, calling the approval a key regulatory milestone. UBS nudged its target to $105 from $104 while retaining a Neutral rating. TD Cowen initiated coverage with a Hold rating and a $105 price target, noting the company’s defensive positioning within the utility sector.
Those developments come as system-level stress indicators have been elevated: PJM Interconnection forecast a record winter peak load, prompting emergency measures to address heightened demand. That context underscores operational and reliability considerations for utilities and their customers during peak periods.
Below are concise takeaways and considerations for investors and market participants.
- Earnings and guidance: Consolidated Edison beat consensus EPS in 4Q25 and issued 2026 guidance ahead of expectations, prompting Scotiabank to raise multi-year earnings estimates by about 4%.
- Valuation and income profile: The stock trades at a P/E of 19.5 and near its 52-week high; it also yields around 3.17% and has a long history of annual dividend increases.
- Regulatory backdrop and capital spending: Capital expenditure guidance was unchanged and a quiet regulatory calendar was cited as reducing headline regulatory risk.
Investors should weigh these factors alongside the recent round of analyst target adjustments and the operational pressures implied by system peak forecasts. The combination of steady dividends, modest upward revisions to earnings, and limited valuation upside frames a cautious outlook reflected in multiple firms’ neutral-to-hold stances.