The firm has a $74 price target on shares of the New York-based utility holding company.
The upgrade reflects the stock's and the overall utility sector's "more reasonable" valuation after a recent pullback.
"We see better relative upside in other regulated utilities, but no longer see a sell rating as warranted given our $74 target," Deutsche Bank wrote in an analyst note.
"While ED stock continued rising through early July, the stock is now down 10.4% from peak levels reached after Independence Day. Over this same period, the stock has slightly underperformed the utility sector ETF (XLU), down 9.3% since early July, and meaningfully underperformed the S&P 500 (up 1.6%)," the firm added.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, solid stock price performance and increase in net income.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ED