RWE: Jefferies upgrades rating
(CercleFinance.com) - Jefferies has upgraded its rating on the RWE stock from "hold" to "buy" and has raised its corresponding target price from 21.
9 euros to 29 euros, deeming that the share has a convincing risk-return ratio at its current valuation, although the stock continues to face several challenges in the near term.
"With a more detailed analysis of RWE's renewables pipeline, we forecast 30% capacity growth by 2025, and expect the earnings contribution from renewables to mostly offset the earnings decline of RWE genco," it explained.
According to the broker, the German energy group's robust balance sheet and the 16.7% stake in its peer E.ON "provide optionality to re-lever for further growth".
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
9 euros to 29 euros, deeming that the share has a convincing risk-return ratio at its current valuation, although the stock continues to face several challenges in the near term.
"With a more detailed analysis of RWE's renewables pipeline, we forecast 30% capacity growth by 2025, and expect the earnings contribution from renewables to mostly offset the earnings decline of RWE genco," it explained.
According to the broker, the German energy group's robust balance sheet and the 16.7% stake in its peer E.ON "provide optionality to re-lever for further growth".
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.