RWE: Jefferies downgrades buy rating
(CercleFinance.com) - An analyst at Jefferies today said that he has re-adopted a "hold" rating on German RWE share, after previously upgrading the share to buy in August, deeming that it reacted too fast on the place of renewable energy in the group's strategy.
"Our U/G to Buy in August focused on RWE's transformation into a leading renewables player through the asset swap with E.ON. While this remains a strength, we clearly overestimated the pace of this change. We think the outlook for the legacy genco remains tough, with risks yet to be fully reflected in FY19-21 consensus, and further clarity on the coal phase-out unlikely for several months," Jefferies explained in its report on the stock.
Alongside this downgrade, the analyst has cut his target price for the share from 24.60 euros to 20 euros.
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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.
"Our U/G to Buy in August focused on RWE's transformation into a leading renewables player through the asset swap with E.ON. While this remains a strength, we clearly overestimated the pace of this change. We think the outlook for the legacy genco remains tough, with risks yet to be fully reflected in FY19-21 consensus, and further clarity on the coal phase-out unlikely for several months," Jefferies explained in its report on the stock.
Alongside this downgrade, the analyst has cut his target price for the share from 24.60 euros to 20 euros.
Copyright (c) 2019 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.