RWE: Oddo raises target price
(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on RWE shares, while trimming its target price for them from 48.
5 euros to 50 euros, as the increase in its short- and medium-term estimates more than offsets the rise in the WACC resulting from higher risk-free rates.
Believing that the outlook for 2023-24 will remain strong and above initial expectations, the broker has raised its 2022 EPS estimates for the German energy group by 71%, followed by respective 73% and 54% increases in 2023 and 2024 EPS estimates.
Although significant, this upgrade is mainly for the 2022-24 period, in which market stress is expected to be the greatest. Analysts expect profitability levels and market conditions to return to normal beyond that.
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