RWE: Oddo raises target price

(CercleFinance.com) - Oddo BHF reinstates its "outperform" rating on RWE shares, having increased its target price for them from 50 euros to 53 euros, following an agreement to phase out lignite in 2030 (instead of 2038) and to strengthen the security of supply in the energy crisis.


Following this new agreement, the provisions for lignite related to the early closure of the remaining asset in 2030 (instead of 2038) will have to be increased by about 1.3 billion euros and will be recorded as non-operating costs, the analyst said.

While the group will not receive any government compensation for accelerating its exit from lignite, the broker has included the consequences of the acquisition of Con Edison Clean Energy and the effects of the capital increase reserved for QIA.


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