RWE ?buy?

22.03.06 - Dresdner Kleinwort Wasser.

LONDON, March 22 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "buy" rating on RWE (RWE-EUR). The target price is set to ?81.

In a research note published this morning, the analysts mention that the company is expected to continue to benefit going ahead from high oil and CO2 prices. RWE?s stock offers investors greater gearing to power prices, the analysts say. The company's EPS benefits by 4.6% from each ?1/Mwh increase on the contract price, while EPS at Eon and Suez are lifted by merely 1.8% and 2.5%, respectively, Dresdner Kleinwort Wasserstein elaborates.