RWE "buy," target price raised

14.07.09 - Deutsche Bank

LONDON, July 14 (newratings.com) - Analysts at Deutsche Bank maintain their "buy" rating on RWE AG (RWE). The target price has been raised from ?68 to ?69.

In a research note published this morning, the analysts mention that the company?s growth prospects are expected to be driven by its strong contracted hedging for 2010, the Essent acquisition, the ongoing synergy programme and the deconsolidation of American Water. RWE is working to streamline its operations geographically, besides increasing its renewable exposure, the analysts add. The company is expected to post robust earnings growth and 8.7% EPS CAGR in 2008-2012, Deutsche Bank says.