RWE: Oddo BHF still a buyer, but trims target
(CercleFinance.com) - Oddo BHF reiterates its "buy" recommendation on RWE, although has cut its target price for the share from 24.
3 euros to 22.9 euros, judging the stock's sensitivity security to the spread to be underestimated spread by the market, in the current context of shrinking available capacity.
The group's sensitivity to increases in electricity prices remains one of the highest in our coverage universe, at 11.1% on EPS for one euro increase per MWh in electricity prices, says the analyst who monitors the stock.
Following the suspension by the Regional Administrative Court of Münster of the deforestation of the Hambach Forest, RWE expects a negative impact on its results as from 2019. As a result, Oddo BHF has cut its EPS estimates by an average of 10% p.a. over the period 2019-22.
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.
3 euros to 22.9 euros, judging the stock's sensitivity security to the spread to be underestimated spread by the market, in the current context of shrinking available capacity.
The group's sensitivity to increases in electricity prices remains one of the highest in our coverage universe, at 11.1% on EPS for one euro increase per MWh in electricity prices, says the analyst who monitors the stock.
Following the suspension by the Regional Administrative Court of Münster of the deforestation of the Hambach Forest, RWE expects a negative impact on its results as from 2019. As a result, Oddo BHF has cut its EPS estimates by an average of 10% p.a. over the period 2019-22.
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.