(CercleFinance.com) – RWE gains nearly 1% in Frankfurt, helped by an analysis by Oddo BHF which maintains its opinion of ‘outperformance’ on the stock, with a price target raised from 48.5 to 50 euros, the rise short- and medium-term estimates that more than compensate for the increase in the WACC resulting from the increase in the risk-free rate.
Believing that “the outlook for 2023-24 should remain well oriented and above initial expectations”, the research office raised its estimates for the German energy group by 71% on EPS 2022, but also by 73 and 54% on the EPS 2023 and 2024.
‘Although significant, this increase mainly concerns the period 2022-24 when market tensions are expected to be the strongest. A ‘return to normal’ on profitability levels and market conditions is expected beyond that,’ he explains.
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