We lower our 12-month price target by $4 to $108, 17.9x our 2026 EPS estimate (up $0.02 to $6.02; 2025 estimate up $0.01 to $5.63), below peers to reflect weaker near-term growth expectations. We project 2025-2028 compounded annual EPS and dividend growth rates near 6% and 4%, respectively, below our expectations for multi-utilities group medians of 7.5% and 6.2%. We see reduced regulatory risk ahead following ED's agreement to a potential rate structure for CECONY's 2026-2028 electric/gas businesses. Given that the average rate base approved was nearly all of ED's request, we think ED is on track to deliver a competitive level of growth in the coming years (~7% rate base CAGR from 2024-2028), though we expect a formal confirmation of the company's long-term capex and rate base targets during the Q4 quarterly call. Shares yield 3.6% based on projected 2026 dividends.

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