Deutsche Bank initiated coverage of New York utility Con Edison (ED) with a BUY rating today. No problem there.
What's a bit strange is that their price target of $41 is BELOW yesterday's closing price of $43.31. Why would they be suggesting you buy shares if they feel fair value is lower? It's due to the "total return," which would include Con Edison's dividend of $2.36 per share, for a yield of over 5%.
Still though, $2.36 per share PLUS the target price of $41 gets to $43.36, and the stock is fifty cents higher than that as I write this.
Nice big fat yield with this dividend, but I don't see how they can call this a BUY instead of a NEUTRAL or HOLD.