RWE "buy"

11.05.06 - Merrill Lynch

LONDON, May 11 (newratings.com) - Analysts at Merrill Lynch maintain their "buy" rating on RWE AG (RWE). The target price is set to ?80.

In a research note published this morning, the analysts mention that the company has reported its 1Q operating results ahead of the estimates. RWE?s full year progress is likely to be understated by the 1Q results, mainly due to the lag of increases in the wholesale power price in Germany and the inappropriate timing of the UK tariff increases, the analysts add.