RWE: Berenberg cuts price target
(CercleFinance.com) - Berenberg cut its price target on RWE but said that although the German utility group is not immune to coal uncertainty, it is positively exposed to renewables.
The brokerage cut its price target to 28 euros, from 28.5 euros, and maintained its "buy" rating on the stock.
"Uncertainty over Germany's coal exit means that RWE's future renewables business remains significantly undervalued," Berenberg wrote in a note to clients.
"Its implied standalone P/E of only 15.7x is almost half that of its future renewables peers. That presents a compelling buying opportunity and a buffer against coal risks," it added.
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.
The brokerage cut its price target to 28 euros, from 28.5 euros, and maintained its "buy" rating on the stock.
"Uncertainty over Germany's coal exit means that RWE's future renewables business remains significantly undervalued," Berenberg wrote in a note to clients.
"Its implied standalone P/E of only 15.7x is almost half that of its future renewables peers. That presents a compelling buying opportunity and a buffer against coal risks," it added.
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.