RWE: Jefferies no longer buys the shares
(CercleFinance.com) - Jefferies has downgraded its rating on German utility group RWE from "buy" to "hold" and has cut its target price from 22.
1 euros to 15 euros, following a 42% jump in the share price since January 2017.
"In our view, the power price driven rally has played out, while policy risks are increasing. We expect a renewed focus on 2030 emissions targets under the next German government," the broker writes in a note.
"This would require gradual coal/lignite phase-out, negatively impacting RWE at a time when innogy's contribution to cash flow also appears on shaky ground," the broker adds about the coal-biased utility.
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