RWE: Morgan Stanley raises target
(CercleFinance.com) - Morgan Stanley raised its target price for RWE to reflect "clarity" on Germany's plans to shut down hard coal plants, which clears the path for further upside, it said.
On Friday, the broker increased its target price for the shares of the German utility group from 32 euros to 34.60 euros, maintaining an "overweight" rating on the stock.
"The confirmation of compensation from, and path towards, German coal closure de-risks the RWE investment case," it wrote in a note.
"With the outcome more positive than we had modelled, and the investment case increasingly renewables focused, we increase our price target," Morgan Stanley added.
The shares of RWE are currently up 3% at 31 euros on the Franfkfurt Stock Exchange. This morning Berenberg also raised its target price for the share, saying that Germany's deal for coal exit puts renewables "at centre-stage."
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