(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on the RWE stock with a price target raised from 53 to 57.5 euros.
According to the analyst, ‘the clouds are parting’ above the company, with in particular a stabilized regulatory context.
“With regard to renewable production (offshore and onshore + PV), we are raising our 2023 EBITDA estimates by 9% to 2,913 ME. The level of infra-marginal offtake set at 130 E/MWh, +6% of the average price captured, should enable RWE to achieve prices of between 140 and 150 E/MWh for the part sold at the market price’, indicates Oddo.
In the case of the gas power plants needed to balance the system, the spreads were high in 2022 and everything indicates that they should remain so in 2023, around 18 E/MWh, reports Oddo, which is raising its expectations in this division as well. by 36% to 1,508 ME in 2023.
‘For the coal and nuclear division (ie essentially lignite), we have raised our estimates to 1 MdE in 2023 against 941 ME previously; the margin of 30 E/MWh on the 2.1 GW of capacity brought back into service or extended should be sustainable over the whole of 2023 in our opinion’, concludes the broker.
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